Raoul Pal Says Weaker Dollar Could Give Bitcoin the Green Light

Real Vision founder Raoul Pal says a weaker US dollar could give bitcoin and the broader crypto market the “green light” to extend their rally.

Dollar and yields hold back liquidity

Speaking on Cointelegraph’s Trade Secrets podcast, Pal said higher bond yields and a strong dollar are keeping liquidity from flowing freely into markets.

The US Dollar Index has been trading at its highest levels of the year.

He explained:

“If they can engineer the dollar lower, then we get a green light for further movement in crypto. I don’t want to get overly excited, so I haven’t got a full green light on everything.”

His preferred outcome would be a weaker dollar, a steeper yield curve and banks expanding the money supply through increased lending.

Borrowing costs have instead been climbing, with the US 10-year Treasury yield reaching 5.29% in September while the Federal Reserve raised its benchmark rate by a quarter point.

Capital rotating away from AI

Bitcoin rose about 25% to $80,000 between Aug. 19 and Aug. 25, a stretch in which AI bellwether Nvidia posted seven straight losing sessions.

Pal said pauses in the AI trade have allowed capital to rotate into crypto, though that rotation also shows liquidity is not yet abundant.