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Activist investor Elliott Management says Crypto faces a “inevitable collapse” after his “perceived proximity to the White House” inflated the bubble


Famous activist investor Elliott management sent a letter to investors, warning of a possible crypto bubble who partly encouraged President Donald Trump who promoted technology.

Letter, which was first reported Financial TimesHe warned investors that “inevitable” bubble crippet collapse “could desolate in ways we couldn’t predict yet.” Elliott also warned that the embrace of the Krypto currency of the White House would weaken the role of American dollar in the global economy, reducing its role as the world’s main spare currency.

The size of the bubble crypto and therefore the risks he represented to investors and economics recently increased suddenly because of his “perceived proximity to the White House,” Elliott said in the letter.

Elliott refused to comment. The White House did not immediately respond to the commentary request.

During the campaign, Trump regularly declared his support for crypto currencies and a desire to see that the US is becoming a dominant country in the industry. The president was also involved in several crypto ventures, including the Crypto platform World Liberty Financial and starting his own memecoin. In addition, his media company has announced plans earlier this week for the development of Fintech services, which, among other things, will allow trading digital assets.

Ever since Trump’s election victory in November, the prices of cryptocurrencies have increased along with the industry -related shares as well as US markets. Just a few days after taking office, Trump signed Executive command This began the creation procedure a National Reserve digital assets.

Elliott said he “never saw this market”, and so many investors inserted money into the market based solely on speculative hype. Elliott also warned of an increase in the prices of speculative assets, which he believes has no “no substance”. This category of property, which includes memecoins, has no fundamental value, and instead encouraged only the hope of investors that they would be able to find someone who would pay for a higher price than they are.

“Crypto is a terrestrial zero” for these speculative assets, Elliott wrote in a letter.

According to Elliott’s opinion, this launched a flock of investors towards cryptocurrencies. But many of them just hoped the market would continue to grow. They “act as a bunch of sports bookmakers,” the letter said.



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