Greenlight Capital founder: digital asset is approaching dangerous speculative levels

BlockBeats news, on January 23, David Einhorn, the founder of Greenlight Capital and billionaire, expressed his doubts in his latest letter to investors, stating that digital assets are approaching dangerous speculative levels. Einhorn wrote, ‘There is nothing to stop the introduction of more tradable tokens, and no one knows what will happen next, but it feels like it will be crazy.’ Einhorn also criticized some bullish predictions that pushed BTC to historic highs. Einhorn described BTC reserves as ‘suspicious’ use of taxpayer funds, unlikely to become a reality. Einhorn wrote, ‘More likely, a sober government should not borrow trillions of dollars from the bond market to participate in BTC speculation, in fact, doing so makes no strategic sense.’ In the letter, he stated that Greenlight Capital has established short positions against two leveraged ETFs related to the largest BTC holder, MicroStrategy. These funds - T-Rex 2x Long MSTR Daily Target ETF and Defiance Daily Target 2X Long MSTR ETF - have become popular for trying to double MicroStrategy’s returns. Einhorn said, ‘These products are destined to fail. We know who the President of the United States is, but no one can guess what he will do.’ He also said that economic policies, tariffs, and Trump’s mission to cut government spending make the future even more uncertain. (Jinse)