Billionaire investor Jeremy Grantham called cryptocurrency a "useless, speculative mechanism" while warning the broader market is in the biggest bubble in American history.
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Jeremy Grantham warns crypto is useless as AI bubble risks 70% decline
Billionaire investor Jeremy Grantham called cryptocurrency a "useless, speculative mechanism" while warning the broader market is in the biggest bubble in American history.
Jeremy Grantham, the billionaire co-founder of GMO, called cryptocurrency a "useless, speculative mechanism" during a June 26 appearance on CNBC's Squawk Box.
"Bitcoin and its peers have no intrinsic value and are driven entirely by speculative fever," Grantham, co-founder and long-term investment strategist at GMO, said.
Grantham, who correctly predicted the 2000 dot-com bust and the 2008 housing crash, said the current market represents the "most expensive" in American history. He warned that AI high-flyers leading the rally could see declines of as much as 70%, according to the interview.
His comments carry weight among value-oriented investors who track his record of calling major turning points. For the crypto market, which has sought mainstream institutional acceptance as an alternative asset, a bearish call from a figure of Grantham's stature could reinforce skepticism among allocators considering digital asset exposure.
A Record of Calling Market Peaks
Grantham has spent decades warning about asset bubbles. His firm, GMO, oversees roughly $60 billion in assets. He previously described the current environment as a "superbubble" encompassing stocks, bonds and real estate — a view that puts him at odds with the bullish consensus driving AI and crypto valuations higher.
Crypto's Institutional Hurdle
For an asset class seeking legitimacy among pension funds and endowments, criticism from established macro investors presents a recurring headwind. Unlike the 2021 bull market, when retail enthusiasm drove prices, the current cycle has relied more heavily on institutional flows through spot Bitcoin exchange-traded funds such as BlackRock's IBIT and Fidelity's FBTC. A negative signal from a respected value investor could slow that momentum, though ETF inflows have shown resilience to negative commentary in the past.
Grantham's critique arrives as the crypto market faces broader macro pressure from elevated interest rates and a strong US dollar, which have reduced liquidity across risk assets. His bearish stance could amplify existing caution among institutional allocators who view crypto as a high-beta play on risk appetite. For value-oriented investors who follow Grantham's framework, the combination of a stretched equity market and speculative crypto valuations may reinforce a defensive posture heading into the second half of 2026.
This article is for informational purposes only and does not constitute investment advice.
