Hedge fund Elliott has warned that the Trump administration's support for cryptocurrencies has fueled a speculative frenzy that could cause "havoc" when prices plunge. The $70 billion firm has taken 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. The fund "has never seen a market like this", Elliott wrote.... The artificial intelligence boom and high stock market valuations are signs that investors are "acting like a bunch of sports bettors". Cryptocurrencies are the "starting point" for the speculative boom 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. (Golden Ten)