Hougan's 'Own Both' Strategy for Navigating the $40 Trillion Debt Crisis

As the U.S. government debt approaches $40 trillion, Treasury Secretary Scott Bessent's plans for growth and deficit reduction have sparked a debate on how to navigate this fiscal crisis. According to Bitwise Chief Investment Officer Matt Hougan, investors should 'own both' AI stocks and Bitcoin in order to hedge against two opposite scenarios.

Hougan believes that if the Treasury is successful in achieving 3% GDP growth through AI adoption, technology stocks will surge. He points out that chip and infrastructure companies have shown remarkable resilience this year, with Micron Technology shares increasing by +224.97% and AMD holding a +108.80% gain.

However, if the Treasury fails to reduce the deficit, Hougan sees Bitcoin as the main crisis hedge. He notes that Bitcoin successfully passed a severe stress test in 2026, rebounding strongly after a difficult first half of the year. The asset's price recovered most of its losses in August, reducing its year-to-date decline to 10.91%.

Hougan suggests that buying both AI stocks and Bitcoin is a pragmatic way to offset two opposite scenarios. He notes that during the summer, when Bitcoin fell by a third, surging semiconductor stocks carried investors' portfolios, while at the end of August, the situation reversed with the AI sector entering a correction.