Elliott Management Warns U.S. Crypto Support Could Trigger Collapse

  • Elliott warns U.S. crypto support could fuel a risky market bubble.

  • U.S. politicians backing crypto may threaten the dollar’s stability.

  • Trump and Melania launch crypto coins, increasing digital asset influence.

Elliott Management, a U.S.-based investment firm, has flagged risks tied to the government’s approach to digital assets, warning that its support could drive speculative excess.

Hedge fund Elliott warns White House is inflating crypto bubble that ‘could wreak havoc’ https://t.co/vzON8NNTro via @ft

— The Solari Report (@solari_the) January 30, 2025

In a letter to investors, the hedge fund led by Paul Singer cautioned that favorable policies from the White House had fueled crypto’s expansion, creating conditions for a potential crash. According to details cited by the Financial Times, Elliott criticized the government for backing assets it described as lacking fundamental value.

Elliott’s Warning: A Crypto-Fueled Speculative Surge

The firm pointed to increasing speculative behavior in financial markets, singling out crypto as a major driver. It argued that government support under the Trump administration could amplify risks.

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