Cliff Asness, co-founder of AQR Capital Management, called Bitcoin a speculative bubble after its meteoric rise to more than $100,000 after the US presidential election in November 2024.
Asness said he remains skeptical of Bitcoin's (BTC) long-term value due to the lack of clear, practical uses outside of speculation and illegal activities.
“I'm on the bubble side, on the web,” Asness said on CNBC's Money Movers, “To move me off, you don't need a price change, just a usage issue. That is what could convince me to be maybe more of a crypto person when I find any use for it, besides speculation and crime. “
The three functions of Crypto
Asness identified three main functions for crypto: speculative trading, use in war-torn regions, and cyber money payments. Despite his positive outlook, he acknowledged the challenge of shorting Bitcoin, citing its volatility and the risks of short positions.
Bitcoin went up 120% in 2024, boosted by hope around the election of President-elect Donald Trump and the prospect of crypto-friendly policies. Investors are anticipating deregulation and the creation of a national Bitcoin reserve under the Trump administration.
However, the digital currency was down 3% in early 2025, trading near $92,000 as of writing.
