Bitwise CIO suggests crypto buybacks and AI/Bitcoin hedges

Bitwise Asset Management Chief Investment Officer Matt Hougan suggests that cryptocurrency valuations could potentially double if major blockchains implement token buyback mechanisms. Using Hyperliquid as a successful model, Hougan notes that the platform has destroyed billions of dollars worth of its own token, reducing its maximum supply and driving price increases. He suggests that if major networks like Ethereum and Solana adopted similar protocols to return value to holders through revenue-linked buybacks, it could reshape sector valuations.

Separately, Hougan advises investors to maintain exposure to both Bitcoin and artificial intelligence stocks as United States government debt approaches $40 trillion. He argues that these assets serve as hedges against two different economic paths: rapid AI-driven productivity growth would favor semiconductor and infrastructure stocks, while persistent inflation used to manage debt burdens would make Bitcoin a vital hedge against bond market instability.