Hedge fund Elliott warns the White House is exaggerating the encryption bubble, “may cause damage”
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The Trump administration’s embrace of cryptocurrencies is helping to promote a speculative fanaticism, which may cause “destruction” speculative frenzy when the price collapses.
This $ 70 billion asset company aims at the obvious enthusiasm of the US government’s assets with high prices but no “substantial” assets. It is also a politician who supports cryptocurrencies. These cryptocurrencies may eventually become competitors of the dollar. According to ” Investor letter seen in the Financial Times.
Elliott wrote that the fund “has never seen such a market”, referring to Frenzy, a speculator who is currently seizing the financial market. It pointed out the prosperity of artificial intelligence and the valuation of the high stock market, which is a sign of investors “like a group of sports shooters.”
It added that the speculation of the entire market has increased, “encryption is zero”, which is not only due to the scale it has developed, but also because of its “distance of the White House.”
It says.
Elliott’s criticism of the White House’s position on cryptocurrencies is that although the company’s founder Paul Singer is a long -term Republican donor Conservative candidates donated $ 56 million, which is a long -term donor.
Singer, who has long warned the dangerous encryption, has criticized the economic policy of Donald Trump in the past. However, in the last election, he donated 5 million US dollars to “Make the United States Great”, and his goal was to support Trump.
Since Trump’s November election, the price of cryptocurrencies has been working hard after he promises that the United States will become the “Bitcoin Super Power of the World”. Bitcoin surged about $ 70,000 to a record height of more than $ 100,000 before the election.
After the inauguration ceremony, Trump signed an administrative order aimed at promoting the United States to “lead the leadership of digital assets and financial technology while protecting the freedom of economic freedom”, and appointed a working group to evaluate the inventory of digital assets to create national digital assets.
Elliott’s letter also pointed out the “huge advantage” enjoyed by the US dollar as the world’s reserve currency, and questioned why when other countries have tried to get rid of green, the US government encourages an alternative.
Elliott wrote that it is “extremely dangerous” for any election official to support the “marginal dollar”, emphasizing hundreds of millions of dollars in politicians who help sympathize with cryptocurrencies.
For example, according to OpenSecrets, the Fairshake Political Action Commission is committed to making the candidate for the parent Kletoper selected on both sides of the political aisle.
Trump’s own company has expanded its contact with the cryptocurrency market. With his son and long -term business partner, Trump supported a crypto platform called World Liberty Financial last year. Earlier this month, he and the first lady Mlania Trump launched Memecoins. This is a cryptocurrency currency currency There is no basic business model or cash flow.
The President’s Trump media, who has a majority of shares, said that it will expand the expansion of social media on Wednesday and create a financial service business, which will invest 250 million US dollars in cryptocurrencies and other assets.
Elliott was founded by Singer in 1977 and is known as a terrible radical investor. The investor trains the company or even the country in the heating board or legal struggle.
Eliott refused to comment.
