Bitwise CIO Advocates 'Owning Both' as $40 Trillion Debt Crisis Looms

U.S. government debt has surpassed $40 trillion, sparking concern about how to address this burden. To mitigate the risk of two opposite economic scenarios, Bitwise Chief Investment Officer Matt Hougan advises investors to 'own both', AI stocks and Bitcoin (BTC).

Hougan's reasoning is based on Treasury Secretary Scott Bessent's plans to either grow GDP above 3% through explosive productivity growth driven by AI adoption or devalue the debt through high inflation. If Bessent's first option is correct, Hougan expects AI stocks like Micron Technology (MU) and AMD to see significant gains.

Chip and infrastructure companies have already shown resilience this year, with MU shares surging 224.97% and AMD holding a 108.80% gain. However, short-term pullbacks are viewed as temporary profit-taking, and Hougan emphasizes the importance of being long AI stocks if Bessent is right.

If GDP growth fails to accelerate, high inflation would force the Treasury to intervene in the bond market, making Bitcoin (BTC) a crucial crisis hedge. In 2026, BTC successfully passed a stress test by rebounding strongly after falling 33% year-to-date in the first half of the year.