Activist investor Elliot Manager says that Crypto faces “an inevitable collapse” after “the one who imagined to the White House” may amplify the bubble

The famous active investor Elliot Managen sent investors a warning from a possible encryption bubble that President Donald Trump partially fueled by technology.

The message was first I mentioned before Financial timesInvestors have warned that the “inevitable collapse” of the encryption bubble “could lead to ruin in ways that we cannot expect yet. Elliot also warned that the White House’s embrace of cryptocurrency will weaken the role of the US dollar in the global economy by reducing its role as a preliminary reserve currency in the world.

Elliot said in the letter that the size of the encryption bubble, and therefore the risks it poses to investors and the economy increased severely because of his “immediate proximity to the White House.”

Elliot refused to comment. The White House did not immediately respond to a request for comment.

During the campaign, Trump regularly announced his support for encrypted currencies and his desire to see the United States has become the dominant state in this industry. The president also participated in several Crypto projects including Crypto Platform World Liberty Financial and its own mechanical launch. In addition, its media company announced plans earlier this week to develop the Fintech service that allows digital assets circulation among other things.

Since Trump’s victory in November elections, encryption prices have increased alongside industry -related stocks as well as American markets in general. A few days after he took office, Trump fell on Executive order Which started to create a file National Reserve Of digital assets.

Elliot said that she “has never seen a market like this”, as many investors pump money in the market based on speculative noise. Elliot also warned against increasing the prices of speculative assets believed to be “no substance.” This category of assets, which include memecoins, has no underlying value, and instead it is only fed with the hope of investors that they can find another person who will pay a higher price than they did.

Elliot wrote in the letter: “Crypto is Ground Zero” for these speculative assets.

From Elliot’s point of view, this was the pushing of herds of investors towards encryption. But many of them only hoped that the market would continue to rise. They “behave like a crowd of sports betting,” as stated in the letter.

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