Real Vision founder Raoul Pal said on Cointelegraph’s Trade Secrets podcast that a weaker U.S. dollar could give crypto a green light and help the sector’s rally continue.
Pal said rising bond yields and a stronger dollar are limiting the free flow of liquidity. If the dollar weakens, crypto would get another green light for upside. He added that he is not getting overly bullish and has not issued a blanket bullish call across all assets.
Pal sees rotation into crypto when the AI trade pauses
Pal said capital can rotate into crypto when the AI trade loses momentum. He cited the period from Aug. 19 to Aug. 25, when Bitcoin climbed about 25% to $80,000, while Nvidia fell for seven consecutive trading sessions.
His preferred scenario is a weaker dollar, a steeper yield curve and an expansion in money supply as banks increase lending. If those conditions do not appear, he said the next-best setup would be AI stocks moving sideways, which could allow capital to rotate into crypto.
Pal also warned that if the AI bubble bursts, liquidity would be pulled out of the system, which would be negative for crypto.
AI agents may favor Ethereum and Solana over Bitcoin
On AI agents, Pal said the economic activity tied to them is more likely to flow to smart-contract platforms such as Ethereum and Solana rather than Bitcoin.
He said AI agents can use stablecoin payments to access online content. Amazon Web Services launched related functionality in June, and Coinbase handles payment verification and settlement through the x402 protocol.
Pal is cautious on claims that Solana could overtake Ethereum
Pal said he is cautious about the idea that Solana could surpass Ethereum in market capitalization. According to him, capital is more concentrated in Ethereum, while Solana’s core activity is speculative and the size of each transaction is smaller.