Crypto Currency Bubble Will Hurt A Lot: Warning of "Trump Illusion" from Fund Manager! - Coin Bulletin

Elliott Management questioned the value of cryptocurrencies, stating that the inevitable collapse of the crypto bubble could lead to unforeseen consequences.

According to an investor letter obtained by the Financial Times, hedge fund Elliott Management, led by Paul Singer, warned that the 'inevitable collapse' of the cryptocurrency bubble could cause significant damage in unpredictable ways.

The fund noted that the cryptocurrency market is at the center of the speculative rise in all markets, partly due to the perception of proximity to the White House.

Last week, US President Donald Trump signed an executive order to explore the creation of a strategic digital asset reserve.

This week, Trump's media company launched Truth.fi, a fintech brand that will invest up to $250 million in traditional investment vehicles and 'similar cryptocurrencies or crypto-related securities'.

In addition, attention was drawn to a DeFi protocol called World Liberty Financial, where Trump is referred to as the "chief crypto advocate," and the official TRUMP and MELANIA memecoins, which were launched just before taking office.

"The value of cryptocurrencies is zero"

Elliott Management founder Paul Singer had said in an interview to the Wall Street Journal in 2023, when Bitcoin was trading at around $29,000, that cryptocurrencies were "completely devoid of value."

The singer said, "There are thousands of cryptocurrencies. That's why their values are zero. Anyone can create one. They are literally nothing that is offered with a marketing promise."

Elliott's letter also drew attention to the "enormous advantage" of the US dollar being the world's reserve currency and described the stance of selected officials supporting the marginalization of the dollar as "extremely dangerous."