Hedge fund Elliott has warned that the Trump administration's support for cryptocurrencies has fuelled a speculative frenzy that could cause "havoc" when prices plunge. The $70 billion firm took aim at the US government's apparent enthusiasm for assets with soaring prices but "no substance", as well as pro-cryptocurrency politicians, according to an investor letter. Elliott wrote that the fund "has never seen a market like this".... The artificial intelligence craze and high stock market valuations are signs that investors are "behaving like a bunch of sports bettors". Cryptocurrency is the "starting point" for the speculative craze across the market, not only because it has grown in size, but also because it is "close to the White House". The "inevitable collapse" of the cryptocurrency bubble "could wreak havoc in ways we cannot anticipate". It is worth mentioning that Elliott founder Paul Singer is a long-time donor to the Republican Party, donating $56 million to conservative candidates during the 2024 election cycle. (Kim X)