Cliff Asnes, co-founder of AQR Capital Management, called Bitcoin a speculative bubble after the price rose sharply to over $100,000 after the US presidential election in November 2024. I called.
Asnes said he remains skeptical about the long-term value of Bitcoin (BTC) as it has no clear practical use beyond speculation or illegal activities.
“I'm on the bubble side of the net,” Asnes told CNBC's Money Movers. “To get out of that, what we really need is a use case, not a price change. Maybe that will convince people to get more interested in cryptocurrencies when they find uses for them, outside of speculation and crime.” It’s a thing.”
Three functions of crypto
Asnes cited three main functions of cryptocurrencies: speculative trading, use in war-torn areas, and cyber ransom payments. Despite the bearish outlook, he acknowledged that shorting Bitcoin is a challenge due to extreme volatility and the risk of concentrated short positions.
Bitcoin soared 120% in 2024, driven by optimism surrounding President-elect Donald Trump's election and hopes for crypto-friendly policies. Investors are counting on deregulation and the creation of a national Bitcoin reserve under the Trump administration.
However, the digital currency has fallen 3% in early 2025 and is trading at nearly $92,000 at the time of writing.
