Trump’s crypto ties could cause ‘havoc,’ $70b hedge fund warns

A 20 billion dollars hedge fund warns that Trump’s support for crypto feeds the mania that could possibly end with market disorders.

The crypto is booming, but everyone does not encourage. A hedge fund of $ 70 billion says that the president Donald TrumpThe support of cryptocurrencies could end with a disaster. Elliott Management warns that crypto is at the center of a speculative frenzy, adding that prices have climbed with “no substance” and that politicians who support the crypto play a dangerous game.

In financial time report On January 30, the hedge fund warned in an investor letter that Trump’s actions endanger the cryptography market as “the inevitable collapse” of the bubble “could be wreaking havoc in a way that we do not Can’t anticipate yet ”.

The fund sees parallels with the AI ​​boom and equity prices, calling investors “a crowd of sports betting”. But Crypto, he says, is “Ground Zero” for Mania, thanks to its “proximity to the White House”.

The Hedge Fund, which managed $ 69.7 billion in assets under management in 2024, said in the letter that any civil servant who pushes alternatives to the greenback makes a “deeply dangerous” decision.

Trump’s trade links with crypto are developing. He and his sons supported a platform called World Liberty Financial, a decentralized financial fund, which already has a meticulous examination on trading inside possible. In January, President Donald Trump and Melania Trump launched the manager of the same Trump (ASSET) and Melania (Melania), fueling the craze of cryptography. Trump Media, where he has a majority participation, also plans to invest up to $ 250 million in crypto, crypto.news reported earlier.

The founder of Elliott, Paul Singer, is a long -standing republican donor. He gave $ 56 million in 2024 but criticized Trump’s policies. However, he donated $ 5 million to a final election by Trump Pac. The Hedge Fund says that he “never seen a market like this”.