Real Vision founder Raoul Pal stated that a pause in the AI stock rally is allowing capital to flow into cryptocurrencies, and that a weakening dollar could give the market a "green light" to continue its growth. According to him, the current strong dollar and elevated yields are holding back the free flow of liquidity.

Strong Dollar and High Yields Limit Liquidity Inflows

Pal noted that rising yields and a strong dollar are restraining liquidity. The yield on 10-year US Treasury bonds rose to 5.29% in September, and the Federal Reserve raised its benchmark rate by 0.25 percentage points. His "preferred scenario" is a weaker dollar, a steeper yield curve, and an expansion of bank lending. If this does not occur, his "second most attractive" option is for AI stocks to move sideways, which would allow for capital rotation into crypto. In his view, a sharp drop in AI stocks would be undesirable, as it would signal an outflow of liquidity from the system.

AI Agents May Increase Demand for Ethereum and Solana

According to Pal, a significant share of crypto-economic activity generated by AI agents will run through smart contract platforms such as Ethereum (ETH) and Solana (SOL), rather than Bitcoin (BTC). In June, Amazon Web Services enabled AI agents to pay for web content access with stablecoins; verification and settlement are provided by Coinbase via the x402 protocol, with supported options including USDC on the Base network. Pal suggests that over time, such models may issue tokens for short-term task financing and distribution of work results.

Signs of Rotation at the Intersection of Crypto and AI

He pointed out that pauses in "AI trading" have already given liquidity windows to shift into cryptocurrencies. For example, from August 19 to 25, BTC gained about 25% and reached approximately $80,000; during the same period, Nvidia shares recorded seven consecutive sessions of decline.