Cliff Asness, co-founder of AQR Capital Management, described Bitcoin as a speculative bubble after its meteoric rise to more than $100,000 following the US presidential election in November 2024.

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

“I'm on the side of the bubble, on the grid,” Asness said He said On CNBC's Money Movers, "To get me out of it, you don't really need to change the price, it's the use case. That's what can convince me to become more of a fan of cryptocurrencies when I find any use for them, apart from speculation and criminality."

The three encryption functions

Asness identified three primary functions of cryptocurrencies: speculative trading, use in war-torn areas, and payment of 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 rose 120% in 2024, supported by... optimism Surrounding the election of President-elect Donald Trump and expectations of 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% in early 2025, and was trading near $92,000 as of writing.