GMO Co-Founder Predicts Bitcoin Will Fall to Zero, Warns of AI Bubble

GMO is a Boston-based asset manager co-founded by Jeremy Grantham in 1977 and currently oversees about $80 billion. Grantham previously warned about bubbles in Japan, dot-com stocks and the U.S. housing market. His latest argument is notable because he dismisses Bitcoin's utility both as a payment method and a store of value, while viewing the AI boom as a valuation risk that could drag down the broader U.S. stock market.

On June 26, 2026, Grantham told CNBC's “Squawk Box” that Bitcoin lacked practical economic utility and would quietly die out over years or decades before falling to zero. Bitcoin was trading below $60,000 at the time, down more than 52% from its October 2025 peak of $126,080. He also called AI the biggest investment bubble in U.S. history and warned that a 70% decline in popular AI stocks would not be surprising.