Raoul Pal Sees Next Crypto Boom in Infrastructure Layer

Raoul Pal, a former Goldman Sachs hedge fund manager and Real Vision founder, is known for identifying macro trades before they become consensus. He believes the next crypto opportunity lies not in Bitcoin, Ethereum, or XRP, but in the infrastructure layer that most retail investors have overlooked.

Pal's investment framework focuses on global liquidity, tracking the combined balance sheets of major central banks, G20 money supply, and foreign exchange reserves as a single aggregate measure. He claims that Bitcoin's price has correlated with this measure at approximately 90% over the past decade.

According to Pal, global liquidity is entering a new expansion phase, with central banks outside the United States already easing. This trend will likely lead to more liquidity rather than less, favoring assets like layer two networks and decentralized physical infrastructure projects.

The specific trade Pal describes is not Bitcoin doubling in value but a bet on the underappreciated infrastructure layer. He cites historical data showing that capital rotation into smaller infrastructure assets has produced extreme percentage returns precisely because so little capital was positioned there beforehand.