Bitcoin a bubble unless broader uses emerge: Cliff Asness

Cliff Asness, co-founder of AQR Capital Management, labeled Bitcoin a speculative bubble after its rapid rise above $100,000 after the November 2024 US presidential election.

Asness said he is skeptical of the long-term value of Bitcoin (BTC) due to its lack of clear, practical uses beyond speculation and illegal activities.

“I’m on the bubble side of the internet,” Asness said on CNBC’s Money Movers program. “You really need a use case, not a price change, to get me away from that. Once I find any use case other than speculation and crime, maybe that’ll get me more excited.” “That’s what can persuade a lot of crypto people to be.”

Three functions of crypto

Asness identified three primary functions of cryptocurrency: speculative trading, use in war-torn regions, and cyber ransom payment. Despite his bearish outlook, he acknowledged the difficulty of shorting Bitcoin, citing Bitcoin’s extreme volatility and the risks of intense short positions.

Bitcoin is up 120% in 2024, driven by optimism around the election of President-elect Donald Trump and expectations for crypto-friendly policies. Investors expect deregulation and the creation of a national Bitcoin reserve under the Trump administration.

However, the digital currency fell by 3 percent at the beginning of 2025 and was traded around $92,000 as of press time.