An assessment has emerged that bitcoin has now risen to a core asset in institutional investors' discussions on how to respond to currency-value erosion.

On Sept. 20 local time, blockchain outlet Bitcoin Magazine reported that Blue Macellari (블루 마셀라리), who built the digital assets business at global asset manager T. Rowe Price, assessed that bitcoin's role has become clearer alongside changes in the U.S. Treasury market.

Macellari linked U.S. fiscal conditions and bond-market trends to the investment rationale for bitcoin based on his experience investing in emerging-market sovereign debt and distressed debt. His main argument was that bitcoin is no longer an alternative asset, but has moved to the centre of asset-allocation debates that reflect the possibility of weakening currency value. He viewed bitcoin as a core element of discussions on currency-value erosion.

He also pointed to the possibility of a return of so-called bond vigilantes being discussed again in markets. He said fiscal worries and liquidity issues are resurfacing in the U.S. Treasury market, while the demand base for Treasuries is also changing. He focused in particular on the main buyers underpinning U.S. debt shifting from overseas to domestic sources. Still, he assessed that the United States has a structurally different base of Treasury buyers from other countries, making it difficult to directly apply the cases of Japan or Italy.

Macellari also explained the background to T. Rowe Price building an actively managed multi-token exchange-traded fund. He said that if asset tokenisation spreads, automation in asset management could also accelerate.

He pointed out, however, that a 24/7 trading system could expand liquidity while also causing market bifurcation. He said that when markets with different trading hours interlock, the price-formation process and the pattern of supply-demand shocks could become more complex.

He took a cautious stance on whether stablecoins can materially increase demand for U.S. short-term Treasuries. He said it is necessary to examine whether rising stablecoin demand based on the Genius Act will bring meaningful changes to the short-term Treasury market. He said that even if stablecoin Treasury holdings increase as they move into the regulated system, it must be assessed separately whether that is enough to change overall Treasury supply and demand.

Institutional demand for bitcoin is also tied to changes in the macroeconomic environment. Macellari said investment strategies to prepare for currency depreciation are in fact moving institutions' asset allocation. That means bitcoin is being accepted as a portfolio tool to respond to fiscal deterioration, expanding liquidity and weakening currency value.

He also focused on differences in perceptions among investor groups. He said differences in how younger investors and institutional investors accept bitcoin and digital assets could affect future patterns of fund inflows.

The remarks suggest that the bitcoin market should be examined not only through price movements but also alongside changes in asset-allocation strategies. To understand the flow of institutional funds, it is necessary to consider together the structure of U.S. Treasury demand, the effect of stablecoin Treasury purchases, and how tokenisation and 24/7 trading affect liquidity. Still, further confirmation is needed on whether bitcoin will establish itself as an asset responding to macroeconomic instability, and whether stablecoins will support Treasury demand.