TechFlow news — On February 2, according to Jinshi Data, hedge fund Elliott warned that the Trump administration's support for cryptocurrencies has fueled speculative frenzy, which could cause "severe damage" when prices plummet. A letter to investors shows that the $700 billion asset manager criticized the U.S. government's notable enthusiasm for assets with surging prices but "no substance," as well as politicians backing cryptocurrencies. Elliott wrote it has "never seen a market like this"... signs such as the AI boom and inflated stock valuations indicate investors are "behaving like a bunch of sports bettors." Cryptocurrencies are the "starting point" of the broader market speculation—not only because of their expanded scale, but also because they are "close to the White House." The "inevitable collapse" of the crypto bubble "could cause severe damage in ways we cannot foresee."
Notably, Elliott founder Paul Singer is a long-time Republican donor, having contributed $56 million to conservative candidates during the 2024 election cycle.
