Cliff Asnes.
Chris Goodney | Bloomberg | Getty Images
Cliff Asnes, co-founder of AQR Capital Management, believes Bitcoin is in a speculative bubble after its rapid rally following November’s presidential election sent the price above $100,000. There is.
“I’m on the bubble side of the internet,” Asnes said Monday on CNBC’s “Money Movers.” “To get me out of that, what we really need is not a price change, but a use case. I think it’s probably more of a cryptocurrency expert when it finds some use for it, aside from speculation and crime.” It convinces me that I can do it.”
Asnes said he identified three uses for cryptocurrencies: speculation, use in war-torn countries, and cyber ransom payments.
Bitcoin rose 120% in 2024 after plummeting at the end of the year due to the election of President-elect Donald Trump. Investors had hoped Trump would usher in a golden age for cryptocurrencies, including deregulation of the industry and support for a national strategic Bitcoin reserve. The digital coin has fallen 3% since the beginning of the year and was last traded at nearly $90,000.
“There are no fundamental trends in cryptocurrencies because we don’t know what the fundamentals are, but there are price trends,” Asnes said. “So I think most people who incorporate trend following into their world are actually long.”
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Bitcoin over the past year.
Asnes is bearish on cryptocurrencies, but said he would not bet against them due to their volatility.
“I don’t short cryptocurrencies just because shorting something with 100% annual volatility can be a little scary. I think everyone has discovered what intensive shorting can do to a portfolio. ‘ he added.
Mr. Asnes co-founded AQR in 1998 after working at Goldman Sachs. He and his partners developed the quantitative-led firm’s investment philosophy during their doctoral studies at the University of Chicago. A program focused on value and momentum strategies.
