Capital starting to rotate back to crypto from AI: Raoul Pal

What happened

Related: El Salvador receives $138 million from IMF after Bitcoin waivers granted Pal is among the most experienced high profile crypto analysts, having worked in hedge fund sales at Goldman Sachs in Europe and co-managed a global macro fund at GLG Partners. He launched the research platform Global Macro Investor in 2005 and co-founded financial media Real Vision in 2014.

Real Vision founder Raoul Pal says a pause in the AI stock rally could help crypto attract capital, while AI agents (AI that carries out multi-step tasks rather than answering one question) are likely to boost Ethereum and Solana adoption. He tells Cointelegraph on the latest episode of Trade Secrets that higher bond yields and the strong dollar are keeping liquidity from flowing freely.

However he believes Bitcoin will miss out of much of the crypto economic activity generated by AI agents, which is likely to flow to smart contract (a program that runs on a blockchain and moves funds by its own rules) platforms like Ethereum and Solana. Pal says he first bought Bitcoin in 2013, after applying a gold-based valuation framework to the cryptocurrency.

25 when BTC rose about 25% to $80,000. Interestingly, over that period, AI bellwether stock Nvidia notched up seven consecutive losing sessions.