Cliff Asness, co-founder of AQR Capital Management, shared his thoughts on the current state of bitcoin in an interview on CNBC's "Money Movers." Asness believes that bitcoin is in a speculative bubble, with its rapid rise above $100,000 following the November presidential election.
Asness stated, "I'm on the bubble side, on net. 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."
He identified three main uses for crypto: speculation, use in war-torn countries, and paying cyber ransom. Bitcoin saw a 120% rally in 2024 after a surge at the end of the year linked to President-elect Donald Trump's election. However, it has since dipped 3% in the new year, trading near $90,000.
Asness emphasized the lack of fundamental trends for crypto, stating, "There's no fundamental trend for crypto because I don't know what the fundamentals are, but there is a price trend. So I would guess most trend followers who have it in their universe are actually long."
Despite his bearish outlook on crypto, Asness expressed caution about shorting it due to its high volatility. He highlighted the risks associated with shorting assets with 100% annual volatility.
Asness co-founded AQR in 1998 after working at Goldman Sachs. The firm's investment philosophy, based on value and momentum strategies, was established by Asness and his partners during their time at the University of Chicago's Ph.D. program.
https://classifiedsmarketing.com/cliff-asness-declares-that-cryptocurrency-is-primarily-used-for-speculation-and-criminal-activities-and-warns-that-bitcoin-is-currently-in-a-bubble/?fsp_sid=1273
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