Activist -investor Elliott Management says that crypto is confronted with an ‘inevitable collapse’ after the ‘observed proximity of the White House’ has blown up a bubble

Famous activist investor Elliott Management sent investors a letter warning for a possible crypto bubble that was partially fed by President Donald Trump’s who had promoted the technology.

The letter, which was first reported by the Financial timesInvestors warned that the “inevitable collapse” of the crypto -bubble “could cause great damage in ways that we cannot yet expect.” Elliott also warned that the embrace of the White House of Cryptocurrency would weaken the role of the US dollar in the global economy by reducing its role as the primary reserve currency in the world.

The size of the crypto -bubble and therefore the risks it was for investors and the economy was the recently greatly increased because of his “observed proximity to the White House,” Elliott said in the letter.

Elliott refused to comment. The White House did not immediately respond to a request for comment.

During the campaign, Trump regularly explained his support for cryptocurrencies and his wish to see the US the dominant country in the industry. The president has also been involved in various crypto companies, including Crypto Platform World Liberty Financial and the launch of his own memecoin. Moreover, earlier this week, his media company announced plans to develop a Fintech service that would make the trade of digital assets possible, among other things.

Since Trump’s election profit in November, the crypto prices have risen together with shares related to industry and American markets in general. Only a few days after his appointment, Trump signed one executive order That started the process for creating one national reserve From digital assets.

Elliott said that “it had never seen a market like this” with so many investors pumping money into the market, purely on speculative hype. Elliott also warned of an increase in prices for speculative assets that it believed was ‘no substance’. That category of assets, including memecoins, has no underlying value and instead is only fed by the hope of investors that they can find someone else who will pay a higher price for it than they.

“Crypto is ground zero” For this speculative assets, Elliott wrote in the letter.

According to Elliott, this herds had driven from investors to Crypto. But many of them only hoped that the market would continue to rise. They behave “like a crowd of sport gamblers,” the letter said.

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