bitcoin should trade higher than today.
That’s the view of Kevin de Patoul, CEO and co-founder of cryptocurrency investment firm Keyrock, who maintains that the market is misinterpreting both macro conditions and the structural progress of digital assets.
The world’s largest cryptocurrency was trading around $73,000 at the time of this publication. Bitcoin is down approximately 18% so far this year, having reached an all-time high of around $125,000 in early October last year.
“If we go back to early 2025 all the way to 2026 and look at all the positive developments, like regulatory progress and institutional adoption, most people would have said that should send the price skyrocketing,” de Patoul said. “Growing macroeconomic uncertainty should increase demand for bitcoins, and yet it has not.”
Instead, BTC has spent much of the last nine months under pressure, still behaving like a risk asset rather than the risk hedge many proponents claim it to be. The capital that flowed aggressively into bitcoin over the past 18 months, much of it institutional, now appears more tactical than ideological.
“It is still valued as a risk asset. Last in, first out in terms of capital allocation,” he said. “If investors perceive it this way, in periods of stress they reduce their exposure.”
Crypto assets have had a muted performance over the past six months, with bitcoin drifting well below its previous highs and much of the altcoin market struggling to maintain momentum. Trading volumes have declined, volatility has compressed, and widespread rallies have not materialized, marking a stark contrast to the speculative rallies of previous cycles. Even as institutional adoption and tokenization efforts advance in the background, price action has remained subdued, reflecting cautious capital flows and a market searching for its next catalyst.
De Patoul stops short of saying that the market is wrong. But he struggles to reconcile the setback with the broader context. “Nothing really explains the recent decline unless there is a misunderstanding about what type of asset it is supposed to be.”
That disconnect is emblematic of what he sees as the current moment in cryptocurrencies: not a cycle of disruption, but a structural transition.
“We are not issuing stablecoins or accepting retail deposits, but we are connected to everything and providing liquidity everywhere,” de Patoul said. “That gives us a front-row seat to the evolution and allows us to participate in the market as it moves toward digital assets and tokenized infrastructure.”
A tale of two markets
From Keyrock’s point of view, working with banks, asset managers, issuers and exchanges, 2026 feels less like a stagnation and more like a reconnection.
“2026 seems like a year of transition rather than a breakup,” said de Patoul. “Much of what defined cryptocurrencies in previous cycles is disappearing faster than expected, while the parts that really make sense are still being built, like the actual finances that move on-chain.”
In his opinion, two largely uncorrelated markets are developing in parallel.
The first is the crypto-native ecosystem: decentralized finance (DeFi), altcoins and the well-known liquidity and hype cycle. The sentiment here is moderate. The rising tide that once lifted all the chips has receded. Broad-based speculative rallies are harder to sustain, and are replaced by “very precise opportunities that make sense,” he said.
The second is the digitalization of traditional finance. Tokenized money market funds, stablecoins, on-chain funds and new market infrastructure. On that side, he says, he remains as enthusiastic as ever.
“When I talk to institutions, nothing has changed. The level of enthusiasm, the level of construction, none of that momentum has diminished,” de Patoul said. “The goal is to make crypto assets more accessible to customers and reconfigure parts of the financial markets.”
These institutional efforts are less sensitive to bitcoin price swings. Stablecoins, tokenized funds, and settlement avenues are all about improving the financial system, not speculating on the next cryptocurrency rally. Circle’s (CRCL) initial public offering and partnerships like Apollo’s partnership with DeFi protocol Morpho reflect multi-year commitments, he noted.
But while the assets have been tokenized, the utility layer is still under construction.
Built, but not yet useful
The last 18 months marked a leap from concept to product. The funds were tokenized. Stablecoins proliferated. The infrastructure was deployed.
However, liquidity remains tight in many tokenized money market funds and real-world assets (RWAs). Tokens exist, but they often function as wrappers rather than transformative instruments.
“They have created the token. Now the question is: where can it be used? Who accepts it? Can it be used as collateral? Can it provide liquidity at scale?” said of Patoul.
Paradoxically, tokenizing a fund can isolate it from traditional equity funds without immediately unlocking digital native benefits. The bridge between traditional institutions and on-chain markets, and the ability to seamlessly use tokenized assets in both worlds, takes time.
“We are stuck in an intermediate phase,” he said. “The pieces are there. The next step is to put them together to generate liquidity at scale.”
That is why he sees 2027 and 2028 as the true turning point.
Traditional capital markets are orders of magnitude larger than cryptocurrencies. Even a small percentage migrating to the chain could eclipse the cryptocurrency’s previous peak.
“Over the course of 2027, we could reach a situation where RWAs grow to be as big as all cryptocurrencies were in the past,” de Patoul said. “This will develop over the next two or three years.”
In other words, digital finance may overtake cryptocurrencies, although not necessarily in the form of a price-driven boom.
“If the utility were fully available today, we would probably have a booming market,” he said. “But it’s not. This is a transitional phase.”
Keyrock’s bet
Founded eight years ago with the thesis that all assets would eventually be digital and on-chain, Keyrock is positioning itself as a bridge between traditional and digital finance.
Historically rooted in capital markets and market making, the company continues to expand its offerings in cryptocurrency, derivatives trading, liquidity provision, and customized strategies for investors. In September, it launched Keyrock Asset Management, adding a second pillar to the business. Assets under management remain modest given the recent launch, de Patoul said.
The broader ambition is to evolve from tokenization to functionality – making digital assets truly useful at scale.
“A very important focus for us is how to move from tokenizing products to making those assets useful and tokenizing at scale,” he said.
Regulatory clarity remains a decisive factor. De Patoul points out the proposed Clarity Law as a “yellow flag”, not because he doubts its eventual approval, but because time matters. “If it goes off the rails for two years, it will have a significant impact,” he said. “Passing regulations is a huge milestone for institutions. That’s when they can invest at scale.”
For now, cryptocurrency price action may seem boring. But in De Patoul’s view, the quiet construction of digital market infrastructure has far more consequences than a short-term rebound.
“The foundation is being laid,” he said, “but the scale is yet to come.” That is why he sees “2027 and 2028 as the true turning point for digital markets.”
Read more: JPMorgan Bullish on Cryptocurrencies for Rest of Year as Institutional Flows Drive Recovery
