Billionaire quant investor and AQR Capital Administration founder Cliff Asness lately threw chilly water on the favored narrative that cryptocurrencies function a dependable “protected haven” or digital gold.
As a substitute, the hedge fund veteran argues that crypto is at the moment buying and selling very like a normal tech inventory.
In line with Asness, the present chart correlations between the S&P 500 futures and Bitcoin present that when the broader inventory market takes a success, crypto goes down proper alongside it.
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“Simply that in the present day crypto doesn’t appear like a retailer of worth / diversifying asset, it appears to be like like danger on (because it has lately however not at all times),” he stated.
A protracted-time critic
Asness basically views Bitcoin as an “imaginary asset” and usually mocks the concept a purely digital forex might ever be definitely worth the combination worth of all different property on Earth.
He firmly rejects the narrative pushed by maximalists that Bitcoin is the first driver of the broader inventory market, viewing it as an alternative as simply one other extremely risky asset.
He has additionally attacked the idea of “Bitcoin yield”, a metric popularized by MicroStrategy’s Michael Saylor to trace the ratio of BTC holdings to excellent shares, arguing that it represents neither true yield nor whole return.
His disdain for the metric is visceral, joking that each time the time period is used, “an angel will get their wings violently ripped off.”
Regardless of strongly disliking Bitcoin, his harshest criticisms are literally directed at Michael Saylor’s company technique and the huge premium MicroStrategy trades at.
He views MicroStrategy functioning basically as a 2x Internet Asset Worth closed-end Bitcoin fund as “moronic” and a obtrusive failure of market effectivity.