Bitwise CIO Says Buy Bitcoin and AI Stocks as U.S. Debt Nears $40 Trillion

As U.S. government debt approaches the $40 trillion milestone, Bitwise Chief Investment Officer Matt Hougan says investors may want exposure to both Bitcoin and AI stocks to prepare for two very different economic outcomes.

Hougan’s argument centers on Treasury Secretary Scott Bessent’s challenge of maintaining U.S. GDP growth above 3% while bringing the federal deficit under control. According to the Bitwise CIO, the government could effectively deal with its mounting debt burden through stronger economic growth or higher inflation.

In the first scenario, rapid artificial intelligence adoption could generate substantial productivity gains and help the U.S. economy grow its way out of its fiscal problems. Hougan believes that outcome would favor AI stocks, particularly semiconductor and infrastructure companies.

Several technology names have already posted strong gains in 2026. Micron Technology shares have surged 224.97% year to date, while AMD has gained 108.80%. Meanwhile, recent declines in companies such as Broadcom and CrowdStrike could represent temporary corrections after earlier strength.

“If Bessent is right and we grow our way out of this, you desperately need to be long AI stocks,” Hougan said.

The alternative is a weaker-growth environment in which persistent inflation reduces the real value of government debt. Hougan argues that Bitcoin could become an important hedge under such conditions, especially if instability in the bond market increases.

Bitcoin experienced significant volatility earlier this year, falling 33% year to date by its July local low amid restrictive monetary conditions. However, BTC staged a sharp V-shaped recovery in August as bond-market concerns intensified. The rally reduced Bitcoin’s 2026 decline to roughly 10.91%.

Hougan said the contrasting performance of Bitcoin and AI stocks illustrates why holding both could provide diversification. Semiconductor stocks helped offset Bitcoin weakness earlier in the summer, while BTC’s August rebound provided support as parts of the AI sector corrected.

“If Bessent is wrong and we get inflation, you need Bitcoin. But if you want to win either way, own both,” Hougan concluded.

With U.S. debt nearing historic levels and uncertainty surrounding growth, inflation and fiscal policy, Hougan sees a combined Bitcoin and AI investment strategy as a way to prepare for either economic scenario.