Raoul Pal Says Weaker Dollar Could Boost Bitcoin and Crypto Markets

Real Vision founder Raoul Pal believes a weaker US dollar could provide a boost to bitcoin and the broader crypto market, potentially extending their current rally. Speaking on Cointelegraph’s Trade Secrets podcast, Pal noted that higher bond yields and a strong dollar are currently restricting liquidity flow into markets. The US Dollar Index has been trading at its highest levels this year, which Pal suggests is a hurdle for crypto’s growth.

Pal expressed optimism about a scenario where the dollar weakens, the yield curve steepens, and banks expand the money supply through increased lending. He cautioned against excessive excitement, however, stating that while a weaker dollar could give crypto the ‘green light,’ it’s not a guarantee for widespread market movement.

Pal also commented on capital rotation from AI stocks to crypto. Bitcoin surged about 25% to $80,000 between Aug. 19 and Aug. 25, coinciding with a dip in AI bellwether Nvidia. Pal sees this rotation as a sign of limited liquidity, preferring a sideways trade in AI stocks to allow capital to drift toward crypto without a broader market crash.

Regarding bitcoin’s long-term value, Pal dismissed the ‘million-dollar bitcoin by 2030’ prediction as a ‘meme,’ though he acknowledged its growing adoption and potential to reach that level by 2032. He has avoided public price targets in the past, citing misinterpretation risks.