According to hedge fund Elliott Management, which manages $71 billion in assets, Donald Trump’s support for cryptocurrencies could lead to market turmoil. The fund warns that the current crypto boom is part of a speculative frenzy that may end in a catastrophic crash.
Elliott Management emphasizes that digital asset prices are skyrocketing without real substance, criticizing politicians who endorse crypto for playing a dangerous game.
Hedge Fund Warns of an Inevitable Crash
According to the Financial Times, the fund warned investors that Trump’s influence on the crypto sector could have unpredictable consequences.
“The inevitable bursting of this bubble could cause chaos in ways we cannot yet foresee.”
The fund compares the current crypto hype to the AI boom and skyrocketing stock prices, referring to investors as “a crowd of sports bettors”.
It argues that crypto is at the epicenter of this speculative mania, mainly due to Trump’s connections to the sector.
Elliott Management, which managed nearly $70 billion in assets in 2024, highlights that any official promoting alternatives to the US dollar is making a highly risky move.
Trump’s Business Ventures in Crypto Are Expanding
Donald Trump and his sons have become increasingly involved in the crypto sector. They endorsed World Liberty Financial, a decentralized finance (DeFi) fund, which is already under investigation for potential insider trading.
In January 2025, Trump and his wife Melania Trump launched meme coins, further fueling the crypto craze:
🔹 Official Trump (TRUMP)
🔹 Melania (MELANIA)
These moves have further intensified the crypto frenzy.
Additionally, Trump Media, where Trump holds a majority stake, has announced plans to invest up to $250 million in cryptocurrencies, as previously reported by crypto.news.
Elliott Management Founder Criticizes Trump’s Economic Policies
Paul Singer, the founder of Elliott Management, is a longtime Republican donor. In 2024, he contributed $56 million to Republican campaigns but has criticized Trump’s economic policies.
Despite this, he previously donated $5 million to Trump’s Political Action Committee (PAC).
The hedge fund concludes that the current crypto market is unlike anything seen before:
“We have never seen a market like this.”
The fund warns that if Trump’s crypto agenda fuels a financial bubble, its collapse could have severe repercussions not just for crypto but for the broader financial markets. 🚨
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