'Inevitable collapse': Trump’s crypto push sparks concern at Paul Singer's Elliott Management: FT
Hedge fund Elliott Management says the "inevitable collapse" of the crypto bubble "could wreak havoc in ways we cannot yet anticipate," according to an investor letter seen by Financial Times.
The hedge fund led by Paul Singer said "crypto is ground zero" for the speculative surge across all markets, in part due to its "perceived proximity to the White House," FT reports.
Last week, President Donald Trump signed an executive order to explore a strategic digital asset reserve. This week, Trump’s media company launched Truth.fi, a fintech brand that will invest up to $250 million in traditional investment vehicles and “similar cryptocurrencies or crypto-related securities.” That comes in addition to World Liberty Financial, a DeFi protocol that counts Trump as its "chief crypto advocate," as well as the official TRUMP and MELANIA memecoins launched just before Inauguration Day.
Elliott's Singer told the Wall Street Journal in 2023, when bitcoin was trading around $29,000, that cryptocurrencies are "completely lacking in any value."
"There are thousands of cryptocurrencies," Singer said at the time. "That’s why they’re worth zero. Anybody can make one. All they are is nothing with a marketing pitch—literally nothing."
The world's foremost cryptocurrency, bitcoin, has surged over the past year and accelerated around the election of President Trump. Bitcoin traded around $43,000 one year ago, rose to the $70,000 level by November and was around $105,000 as of publication time, according to The Block's BTC price data.
Elliott’s letter also points to the "immense advantage" the U.S. dollar has as the world’s reserve currency and said elected officials who support "marginalising the dollar" was "profoundly dangerous."
More than $170 million was spent to elect 253 pro-crypto candidates last November, and it's been reported that crypto PAC Fairshake has already raised $116 million for the 2026 midterms.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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1. Technology stocks fell sharply as investor interest shifted toward energy and selected defensive assets. From October 10 to 16, the Nasdaq 100 declined 5.49% and the S&P 500 fell 1.95%, while the Dow gained 0.67% and WTI crude rose 10.41%. BTC, ETH, and SOL declined 1.27%, 2.65%, and 4.44%, respectively. This week's technology earnings will be an important test of whether revenue growth, margins, and cash flow can justify current valuations. Better-than-expected results could help stabilize markets in the near term. 2. Crypto continues to see pockets of strong activity, but a broad-based altcoin season has yet to materialize. CoinMarketCap's (CMC) Altcoin Season Index stood at 54 as of the October 18 UTC daily observation, below the altcoin-season threshold of 75, while BTC dominance rose to 60.08%. Our proxy leverage ratio fluctuated between 4.00 and 4.07 during the week, showing no sustained increase and suggesting limited appetite for additional leverage. Meanwhile, as major exchanges expand access to traditional financial assets, the recent sell-off in AI-related equities could attract short-term speculative capital away from crypto. Such capital rotation could make it more difficult for a new altcoin season to take hold. 3. Papertrade's loss-to-mine model has generated significant interest across the crypto community. The protocol combines high-leverage derivatives trading with zero slippage and a mechanism that rewards trading losses with PAPER tokens. Across the eight complete UTC days from October 10 to 17, cumulative reported revenue reached approximately $56.08 million, including $51.90 million distributed to token holders. With growing participation from key opinion leaders (KOLs), Papertrade has reportedly ranked among the top three platforms by profitability in the broader market recently. Assets to watch: BTC, ETH, SOL, ARB, OP, SKHYNIX, SKHY, META, TSLA, LRCX, and SPCX. Key research priorities this week: Cash flow performance in technology earnings; the relative discount and holding costs of the two SK Hynix contracts; and U.S. initial jobless claims and PMI data. Weekly market data cover the period through October 16, while research information was verified through October 18. Observation periods are specified separately for each chart.
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