Donald Trump’s new pro criptomoned approach is feeding a speculative frenzy that could wreak havoc when prices collide. At least that is what Elliott Management warns from the Fund, who think that the Government has led to an increase in the value of cryptoactives. The information was published by the Financial Times.
The organization criticized politicians who have given their support to digital currencies, warning that these instruments could eventually endanger the supremacy of the US dollar. They point out that the sector is going through an unprecedented speculative phase and even compared investors with sports stationing, highlighting parallels with the rise of artificial intelligence and inflated assessments of actions.
They also made it clear that the collapse of what they describe as a cryptographic bubble «could wreak havoc in forms that we still cannot anticipate.» These criticisms of the government arise despite the fact that the founder of the company, Paul Singer, is a long -standing republican donor.
Since Trump’s electoral victory in November, the value of the leading cryptocurrency has experienced a vertiginous increase: it went from around $ 70,000 before the elections to exceed the $ 100,000 barrier. At the time of writing this article, the price of Bitcoin is USD 104,631, according to CoinmarketCap data.
Elliott Management members did not stop there, and They expressed their confusion due to the fact that the current administration is promoting the adoption of alternatives to the dollarjust when other countries are implementing initiatives to disconnect from it. They consider that supporting the «marginalization of the dollar» is a «deeply dangerous.»
Since Trump’s assumption, his government has taken measures to support the cryptoactive sector, as promised during his campaign. The president signed an executive order to establish a National Reserve of Digital Assets, which covers issues such as the prohibition of CBDC and the creation of the Cryptocurrency Advisory Council, led by David Sacks. In addition, he granted forgiveness to Ross Ulbricht, creator of the first market that Bitcoin accepted as a payment method.
In recent months, the US president has strengthened his presence in the cryptoactive sector, a movement backed by his family and commercial partners.
Last year, Trump, along with his children and collaborators, supported the World Liberty Financial cryptocurrency platform, aimed at promoting decentralized finances (Defi). In addition, he and his wife recently launched the Trump and Melania Memecoins, an initiative that generated intense debates within the community.