14th January 2025 – (New York) Cliff Asness, co-founder of AQR Capital Management, has categorically described Bitcoin as a speculative bubble, following its dramatic ascent to over $100,000 after the November 2024 U.S. presidential election. Asness expressed his ongoing scepticism regarding Bitcoin’s long-term value, citing a lack of clear, practical applications beyond speculation and illicit activities.
Speaking on CNBC’s Money Movers, Asness stated, “I’m on the bubble side, on the net. To move me off that, you really need not a price change, but a use case. That’s what could convince me to become maybe more of a crypto person when I find any use for it, aside from speculation and criminality.”
Asness identified three primary functions for cryptocurrencies: speculative trading, utilisation in war-torn regions, and payment of cyber ransoms. Despite his bearish stance, he acknowledged the complexities involved in shorting Bitcoin due to its extreme volatility and the risks inherent in concentrated short positions.
The surge in Bitcoin’s value—an impressive 120% in 2024—was fuelled by optimism surrounding President-elect Donald Trump’s election and the expectation of crypto-friendly policies. Investors are anticipating potential deregulation and the establishment of a national Bitcoin reserve under Trump’s administration.
However, as of early 2025, Bitcoin experienced a 3% decline, trading at approximately $92,000.
The post Co-founder of AQR Capital Managemen labels Bitcoin a speculative bubble appeared first on Dimsum Daily.
English (US) ·