Raoul Pal: Dollar Weakness Could Attract Capital to Cryptocurrency

Raoul Pal, founder of Real Vision, argues that the weakening of the US dollar could be a catalyst for attracting capital to cryptocurrency. He says that if the dollar can be weakened, it will give the “green light” for further movement in the cryptocurrency industry. Pal does not rule out that many crypto-economic activities arising from AI agents may shift to smart contract platforms like Ethereum and Solana. According to Pal, the current high bond yields and strong dollar are holding back liquidity inflow into the market. If the dollar can be weakened in the near future, it could create favorable conditions for cryptocurrency growth. He emphasizes that, although he does not want to get too carried away, at the moment he does not see a full signal for growth in everything. “If they can weaken the dollar, then we will get the green light for further movement in cryptocurrency,” he noted.

Pal also notes that the cryptocurrency market could benefit from a pause in the AI stock rally, as this would allow capital turnover to shift to crypto platforms. Between August 19 and 25, Bitcoin recovered with a growth of approximately 25%, reaching a price of $80,000. At the same time, shares of Nvidia, a leader in the AI market, showed seven consecutive days of losses. Despite the optimism, he warns of the dangers associated with a possible crash in the AI sector. “A crash in AI would be undesirable, as it would mean liquidity being squeezed out of the system, threatening the conditions necessary for cryptocurrency growth,” he believes.

Moreover, Pal predicts that AI agents will increase interest in Ethereum and Solana by enabling payments for web content using stablecoins. Ethereum attracts more capital than Solana, making its market cap dominance more sustainable. Pal is confident that “Solana needs more than just activity to surpass Ethereum.” According to DefiLlama data, in the last 24 hours, Solana registered 3.2 million active addresses compared to Ethereum's 387,000. However, Ethereum leads in locked funds, amounting to $54.4 billion compared to Solana's $6.7 billion. Pal also noted that he has stopped setting public target prices for cryptocurrencies, as his forecasts often get reinterpreted online. He describes a million-dollar Bitcoin by 2030 as a “meme,” reflecting growing adoption and ETF interest in the asset. “I don’t know if it will reach a million dollars? But certainly by 2032, yes, I have no problem with that,” he added.