The turning point for cryptocurrency investment is in 2027: analyzing the divergence between Bitcoin valuation and institutional funds

Kevin De Patourel, CEO of cryptocurrency investment firm Keyrock, states that the current cryptocurrency market is not focused on short-term price fluctuations but is in the midst of a significant structural transformation of financial infrastructure. He points out that Bitcoin is undervalued relative to its intrinsic value and notes that institutional capital inflows are shifting from tactical to strategic. He predicts that the true surge in cryptocurrency investments will occur around 2027–2028.

The Discrepancy Between Bitcoin Prices and Market Expectations: The Reality of Crypto Investment

Currently, Bitcoin (BTC) is trading around $70,910, down approximately 44% from its all-time high of $126,080 recorded last October. De Patourel questions why, despite rising macroeconomic uncertainties and increasing institutional adoption, BTC is still treated as a risk-on asset.

“Despite all the positive factors like regulatory progress and institutional entry from early 2025 to 2026, the explosive price rally many expected has not materialized,” he notes. Instead, he suggests that worsening macroeconomic conditions should increase demand for crypto investments, but the market is not reacting to these signals.

Over the past 18 months, capital inflows into BTC have mainly come from institutional investors, but this dynamic is changing. What was once a “ideological” investment stance is shifting toward a “tactical” allocation, with rapid sell-offs during periods of market instability.

Maturing Tokenization Infrastructure and Two Market Trajectories

De Patourel views the crypto market as comprising two distinct trajectories:

First Market: The native crypto ecosystem, characterized by decentralized finance (DeFi), altcoins, and cyclical liquidity and speculation. The broad speculative rallies seen in previous cycles have slowed, and only “highly refined and rational opportunities” are now being selected. Sentiment remains cautious, with market participants becoming more selective.

Second Market: The digitization of traditional finance, including stablecoins, tokenized money market funds, on-chain funds, and new market infrastructure. De Patourel emphasizes that institutional interest in this area remains strong. Examples like Circle’s (CRCL) IPO and the partnership between Apollo and DeFi protocol Morphos demonstrate long-term commitments.

These two markets are developing with low correlation and are progressing in parallel, with markedly different perspectives on crypto investment.

From Liquidity Building to Large-Scale Deployment: The 2027 Turning Point

The past 18 months have been a transition from concept to product. Tokenized funds have emerged, the stablecoin market has rapidly expanded, and foundational infrastructure has been built. However, many tokenized money market funds and real-world assets (RWA) still lack liquidity.

Tokens exist, but implementation challenges remain. De Patourel states, “The building of tokens is done. The next phase is about where they can be used, who will accept them, whether they can serve as collateral, and whether they can bring large-scale liquidity.”

Current tokenized assets are not fully unlocking the digital-native advantages and remain isolated from traditional capital pools. They are at a stage where bridging traditional institutions and on-chain markets is crucial, but seamless asset utilization across both worlds will take more time.

“The elements are in place, but the next step is to combine them to provide large-scale liquidity,” he says. This is where the significance of 2027–2028 lies.

Traditional capital markets are vastly larger than crypto markets. Even a small shift of a fraction of that capital onto the chain could surpass all-time highs in crypto investments. De Patourel suggests that “by 2027, RWAs could grow to match the total market cap of all previous crypto assets,” indicating a major growth phase ahead.

Keyrock’s Strategy: From Tokenization to Functionality

Founded eight years ago on the hypothesis that all assets would become digital and on-chain, Keyrock is establishing itself as a bridge between traditional finance and digital finance. The company continues to offer native crypto liquidity provision, derivatives trading, and customized strategies, and in September 2025, launched its asset management division, Keyrock Asset Management.

The firm’s primary goal is to evolve from tokenization to practical utility. “Our key focus is not just on tokenizing products but on making those token assets useful and enabling large-scale tokenization,” De Patourel explains.

Regulatory clarity remains a critical factor. While the proposed Clarity Act is seen as a “yellow flag,” it is not a reason to doubt final passage. He warns, “Delays in regulatory clarity could significantly hinder future large-scale institutional investments.”

In the short term, market volatility in crypto may be limited. However, the quiet development of digital market infrastructure is far more important than short-term rallies. The foundation is steadily being built, and scale expansion is just beginning. De Patourel’s positioning of the true turning point in 2027–2028 is rooted in this understanding.