Cliff Asness, co-founder of AQR Capital Management, labeled Bitcoin a speculative bubble following its meteoric rise to over $100,000 after the November 2024 U.S. presidential election. 

Asness said he remains skeptical of Bitcoin’s (BTC) long-term value due to the absence of clear, practical uses beyond speculation and illicit activities.

“I’m on the bubble side, on the net,” Asness said on CNBC’s Money Movers, “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.”

Crypto’s three functions 

Asness identified three primary functions for crypto: speculative trading, use in war-torn regions, and paying cyber ransoms. Despite his bearish outlook, he acknowledged the challenge of shorting Bitcoin, citing its extreme volatility and the risks of concentrated short positions.

Bitcoin surged 120% in 2024, fueled by optimism surrounding President-elect Donald Trump’s election and expectations of crypto-friendly policies. Investors anticipate deregulation and the creation of a national Bitcoin reserve under Trump’s administration.

However, the digital currency dipped 3% in early 2025, trading near $92,000 as of writing.