Growing skepticism about the sustainability of AI stock valuations is pushing prominent fund managers to recommend Bitcoin as a portfolio hedge, according to two separate interviews published Monday.
Bill Miller IV, chief investment officer at Miller Value Partners, told CNBC that long-term investors are increasingly treating Bitcoin as a hedge against fiscal instability. He pointed to the U.S. fiscal deficit, which he said stands at $1.8 trillion this year—exceeding Bitcoin’s entire market capitalization. Combined with a weakening dollar, Miller argued that the imbalance is encouraging capital to rotate out of the technology sector and into alternative stores of value.
“Bitcoin is drawing not only capital previously allocated to AI investments but also rising attention as a structural hedge against growing government debt,” Miller said. He described the shift as a structural change in institutional portfolio construction rather than a short-term trading move.
Separately, Markus Thielen, founder of 10x Research, recommended a simpler allocation: a 50-50 split between Bitcoin and gold at current prices. Thielen said AI-related stocks have become significantly harder to value, while Bitcoin and gold offer more transparent supply dynamics and are often viewed as hedges against inflation and currency debasement.
Both views highlight a broader narrative in traditional finance: digital assets are gradually being accepted as a legitimate asset class. For the crypto market, sustained institutional inflows could support further price appreciation and adoption. For equity investors, the rotation may signal a cooling period for AI names that have driven index-level gains. Retail investors, the managers cautioned, should still weigh Bitcoin’s volatility and their own risk tolerance before making allocation changes.
