Real Vision founder Raoul Pal says a pause in the AI stock rally could help crypto attract capital, while AI agents are likely to boost Ethereum and Solana adoption.
A weakening US dollar could give crypto the “green light” and help extend the industry’s rally, says Real Vision founder Raoul Pal.
He tells Cointelegraph on the latest episode of Trade Secrets that higher bond yields and the strong dollar are keeping liquidity from flowing freely.
“If they can engineer the dollar lower, then we get a green light for further movement in crypto,” he says. “I don’t want to get overly excited, so I haven’t got a full green light on everything.”
The US Dollar Index has been trading at the year’s highest levels. Source: TradingView
However he believes Bitcoin will miss out of much of the crypto economic activity generated by AI agents, which is likely to flow to smart contract platforms like Ethereum and Solana.
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Pal is among the most experienced high profile crypto analysts, having worked in hedge fund sales at Goldman Sachs in Europe and co-managed a global macro fund at GLG Partners. He launched the research platform Global Macro Investor in 2005 and co-founded financial media Real Vision in 2014.
Pal says he first bought Bitcoin in 2013, after applying a gold-based valuation framework to the cryptocurrency.
Bitcoin’s cycle recovery arguably came between Aug. 19 and Aug. 25 when BTC rose about 25% to $80,000. Interestingly, over that period, AI bellwether stock Nvidia notched up seven consecutive losing sessions.
Pal says pauses in the AI trade have allowed capital to rotate into crypto.
“You can tell there’s this sort of rotation for liquidity that’s around right now, which means it’s not abundant yet,” he says.
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