{"id":29717,"date":"2025-02-01T11:09:41","date_gmt":"2025-02-01T16:09:41","guid":{"rendered":"https:\/\/leadingcryptonews.com\/elliott-warns-crypto-bubble-could-burst-amid-political-backing\/"},"modified":"2025-02-01T11:09:41","modified_gmt":"2025-02-01T16:09:41","slug":"elliott-warns-crypto-bubble-could-burst-amid-political-backing","status":"publish","type":"post","link":"https:\/\/leadingcryptonews.com\/elliott-warns-crypto-bubble-could-burst-amid-political-backing\/","title":{"rendered":"Elliott Warns Crypto Bubble Could Burst Amid Political Backing"},"content":{"rendered":"


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Hedge fund giant Elliott Management has warned that the White House\u2019s pro-crypto stance fuels an unsustainable market bubble that could cause severe financial disruption when it collapses.<\/strong><\/p>\n

The concern comes amid Donald Trump\u2019s pro-crypto stance, which contributed heavily to his re-election as US President.<\/p>\n

Elliott Says Crypto is \u201cGround Zero\u201d for Speculative Frenzy<\/strong><\/h2>\n

The Financial Times reported the hedge funds\u2019 warning, citing a letter to investors. Per the report, Elliott cautioned that the speculative mania surrounding digital assets, as amplified by political support, represents a looming financial risk with unpredictable consequences.<\/p>\n

The $70 billion hedge fund, founded by billionaire Paul Singer, criticized the US government\u2019s increasing alignment with cryptocurrencies. Specifically, Elliot argued that such assets lack fundamental value yet have surged due to perceived proximity to the White House.<\/p>\n

Against this backdrop, the firm warned that embracing digital assets that could marginalize the US dollar. In their opinion, the global reserve currency is a dangerous policy direction.<\/p>\n

According to the investor letter, Elliott has \u201cnever seen a market like this.\u201d The firm pointed to the\u00a0AI-driven stock rally\u00a0and soaring cryptocurrency prices as evidence that investors are behaving irrationally. It singled out crypto as the epicenter of the speculative surge, describing it<\/span> as assets with \u201cno substance.\u201d<\/p>\n

The hedge fund believes that the crypto industry has grown to dangerous levels due to White House endorsement.<\/p>\n

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\u201cCrypto is ground zero\u2026could wreak havoc in ways we cannot yet anticipate,\u201d the report stated, citing Elliot.<\/p>\n<\/blockquote>\n

Elliott\u2019s criticism is notable given Singer\u2019s political connections. Despite being a longtime Republican donor and contributing $56 million to conservative candidates in the 2024 election cycle, Singer has frequently voiced skepticism about cryptocurrencies.<\/p>\n

His hedge fund now argues that political support for digital assets, particularly under the Trump administration, has exacerbated reckless speculation.<\/p>\n

Beyond policymaking, Trump\u2019s personal and business dealings have deepened his ties to the crypto sector. Alongside his sons and business associates, Trump backed World Liberty Financial (WLFI), a cryptocurrency platform launched last year.<\/p>\n

He and the First Lady have also introduced meme coins, TRUMP and MELANIA, respectively, presenting a speculative class of cryptocurrencies with no inherent value. Similarly, Trump Media, where the former president holds a majority stake, also announced plans to invest up to $250 million in crypto. These actions, Elliott warns, have further legitimized speculative behavior in the market.<\/p>\n

Additionally, pro-crypto lobbying has surged, with the Fairshake PAC spending $173 million in the 2023-2024 election cycle to support crypto-friendly candidates. The advocacy group has a $116 million war chest for the 2026 midterms.<\/p>\n

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Disclaimer<\/p>\n

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our\u00a0Terms and Conditions,\u00a0Privacy Policy, and\u00a0Disclaimers\u00a0have been updated.<\/p>\n<\/div>\n<\/div><\/div>\n


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Hedge fund giant Elliott Management has warned that the White House\u2019s pro-crypto stance fuels an unsustainable market bubble that could cause severe financial disruption when it collapses. The concern comes amid Donald Trump\u2019s pro-crypto stance, which contributed heavily to his re-election as US President. Elliott Says Crypto is \u201cGround Zero\u201d for Speculative Frenzy The Financial […]<\/p>\n","protected":false},"author":1,"featured_media":29718,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-29717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin"],"yoast_head":"\nElliott Warns Crypto Bubble Could Burst Amid Political Backing - Leading Crypto News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/leadingcryptonews.com\/elliott-warns-crypto-bubble-could-burst-amid-political-backing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Elliott Warns Crypto Bubble Could Burst Amid Political Backing\" \/>\n<meta property=\"og:description\" content=\"Hedge fund giant Elliott Management has warned that the White House\u2019s pro-crypto stance fuels an unsustainable market bubble that could cause severe financial disruption when it collapses. 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