Pal Sees Next Crypto Boom in Infrastructure Layer

Raoul Pal, a renowned financial expert and founder of Real Vision, believes that the next big crypto trade is not in Bitcoin (BTC), Ethereum (ETH), or XRP, but rather in the infrastructure layer of the blockchain ecosystem. According to him, global liquidity, measured by aggregated central bank balance sheets, G20 money supply, and foreign exchange reserves, is likely entering an expansion phase.

Pal's analysis shows that Bitcoin's price has tracked global liquidity with approximately 90% correlation over the past decade. He argues that when central banks expand, money eventually reaches the most speculative end of the risk spectrum, and crypto, being the highest-beta asset class available, receives a disproportionate share of that flow.

The specific trade Pal is describing is not Bitcoin doubling from here, but rather a bet on layer two networks, decentralized physical infrastructure projects, and application-specific chains. He believes that capital will rotate into these underowned infrastructure assets, which have historically produced extreme percentage returns precisely because so little capital was positioned there beforehand.