Raoul Pal: Infrastructure Layer Holds Key to Next 100x Crypto Trade

Raoul Pal, a former Goldman Sachs hedge fund manager and Real Vision founder, has made a case for the next big crypto opportunity. He argues that it's not in the assets dominating market attention, but rather in the infrastructure layer that most retail investors have overlooked.

Pal's investment framework is centered around global liquidity, which he tracks using central banks' combined balance sheets, G20 money supply, and foreign exchange reserves. According to his analysis, Bitcoin's price has correlated with this measure at approximately 90% over the past decade.

With global liquidity entering a new expansion phase, Pal believes that the next 100x crypto trade will be in the infrastructure layer, which includes layer two networks, decentralized physical infrastructure projects, and application-specific chains. He points to a historical rotation sequence where Bitcoin pulls institutional capital into the space first, followed by Ethereum and large-cap altcoins, and finally smaller infrastructure assets.

Multiple on-chain signals are converging simultaneously, including long-term holder accumulation hitting a six-year high and Bitcoin exchange reserves falling $23 billion in 90 days. Pal believes that this moment could be a major turning point for the crypto market.