Bitcoin a bubble unless broader uses emerge: Cliff Asness

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Cliff Asness, one of the co-founders at AQR Capital Management, referred to Bitcoin as a speculative bubble, given its dramatic surge past $100,000 following the 2024 U.S. presidential election in November.

Clifton Asness expresses ongoing doubt about Bitcoin’s (BTC) lasting worth because it lacks concrete, everyday applications beyond mere speculation and illegal dealings.

In an interview on CNBC’s Money Movers, Asness stated, “I currently lean towards being skeptical about cryptocurrencies, but if someone can demonstrate a practical application for them beyond just speculative investment and illegal activities, I might become more open to the idea of embracing crypto.

Crypto’s three functions 

According to Asness, there are three main roles that cryptocurrency can play: speculative trading, utility in conflict zones, and ransom payments in cyber attacks. Despite his pessimistic viewpoint, he admitted the difficulty of selling short Bitcoin due to its high volatility and the dangers associated with large-scale bets against it.

2024 saw Bitcoin skyrocket by an impressive 120%, driven mainly by optimism about President-elect Donald Trump’s election and hopes for pro-crypto government policies. With investors expecting less regulation and the establishment of a national Bitcoin reserve under Trump’s leadership, this digital currency is poised for significant growth in the coming years.

However, the digital currency dipped 3% in early 2025, trading near $92,000 as of writing.

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2025-01-13 23:15