AQR Co-founder Cliff Asness Calls Bitcoin a ‘Speculative Bubble’

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Cliff Asness Expresses Skepticism on Bitcoin’s Value

Cliff Asness, co-founder of AQR Capital Management, has openly criticized Bitcoin’s rapid price escalation, labeling it as a speculative bubble. In his recent appearance on CNBC’s Money Movers, Asness questioned the long-term value of Bitcoin, which recently surpassed the $100,000 mark following the U.S. presidential election in November 2024.

Skepticism Over Bitcoin’s Practical Use

Despite Bitcoin’s impressive performance, Asness remains unconvinced about its functionality beyond speculative trading and questioned activities that oftentimes skirt legality. ‘I’m on the bubble side, on the net,’ Asness stated, emphasizing his need to see practical applications beyond the current use cases before reconsidering his stance on cryptocurrency.

Identified Functions of Cryptocurrency

Highlighting the functions of cryptocurrencies, Asness pointed out three specific uses: speculative trading, utility in conflict zones, and its role in cyber ransom payments. Despite acknowledging these uses, he maintains a bearish outlook due to the inherent risks and volatility associated with Bitcoin.

Market Trends and Investor Outlook

Bitcoin’s recent surge, attributed to optimistic expectations surrounding President-elect Donald Trump’s crypto-friendly stance, saw the digital currency’s value increase by 120% in 2024. However, a slight dip early in 2025 has left investors cautious, with Bitcoin trading around $92,000.

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