Cliff Asness, co-founder of AQR Capital Management, labeled Bitcoin a speculative bubble unless real use cases emerge. His comments aired on CNBC’s Money Movers on January 13, following Bitcoin’s sharp rally past $100,000 after the U.S. presidential election.
“I’m on the bubble side, on net,”
said Asness.
“To move me off that, you really need not a price change, but a use case.”
He outlined three core applications for crypto so far: speculation, transactions in war zones, and cyber ransom payments. Asness said these do not support long-term value and sees no fundamental trend behind the asset class.
“There’s no fundamental trend for crypto because I don’t know what the fundamentals are,”
he added.
Bitcoin Rally Meets Institutional Doubt
Bitcoin surged 120% in 2024, driven by optimism surrounding President-elect Donald Trump’s pro-crypto stance and hopes for deregulation. Still, the digital asset dropped to $90,000 by early January 2025. Asness acknowledged the price strength but refused to take a short position, citing volatility.
“I would guess most trend followers… are actually long,”
he said, while admitting he won’t bet against it.
Nate Geraci: A Caution Against Overconfidence
Nate Geraci, president of ETF Store, responded indirectly on X with a short message that echoed across crypto circles:
“Remember… Nobody. Knows. Anything.”
Geraci’s quote—posted alongside screenshots of headlines warning of bitcoin crashes—summed up the market’s unpredictability. Headlines from Barron’s, Forbes, and CryptoNewspredicted collapse, while bitcoin still held significant value.
From Peter Schiff’s doomsday alerts to institutional investors like BlackRock increasing exposure, market sentiment remains split. Asness insists on real-world adoption, while Geraci points to the broader uncertainty that defines financial forecasting.
The debate underscores the central tension in crypto markets: Is Bitcoin digital gold or just hype waiting to burst? Even seasoned experts offer no clear path—only speculation, doubt, and momentum.
As Geraci put it, “Nobody. Knows. Anything.”