Raoul Pal Foresees Strong Crypto Market as US Dollar Weakens

Raoul Pal Predicts Bitcoin Surge Amid Weakening Dollar

Raoul Pal, CEO of Real Vision, believes that the weakening US dollar could fuel a surge in the cryptocurrency market in the second quarter of 2025. According to Pal, Bitcoin has already seen a nearly 4% increase over the past 24 hours as the value of the dollar continues to slide.

In a March 5 X post, Raoul Pal stated, “With the dollar, rates, and oil headed lower (all specific aims of Bessent), financial conditions are now easing fast and lead risk assets by a couple of months.” This statement came just a day after US Treasury Secretary Scott Bessent announced his intention to reduce US interest rates, a move that could further weaken the dollar and impact financial markets.

Raoul Pal suggests that the second quarter of 2025 may prove to be a favorable period for both tech stocks and cryptocurrencies. “Should signal a good Q2 for tech and crypto and hopefully H2 2025 too as these trends continue,” he added. Historically, Q2 has been a strong quarter for Bitcoin, with an average return of 26.89% since 2013, according to CoinGlass data.

US Dollar Weakness and Its Impact on Bitcoin

The US Dollar Index (DXY), which measures the dollar’s strength against a basket of major currencies, has dropped by 2.79% since February 5, 2025. In parallel, Bitcoin has risen by nearly 6%, currently trading at $91,860, according to CoinMarketCap data. This pattern is reminiscent of the COVID-19 pandemic when a weaker dollar drove investors toward Bitcoin, causing its price to rise from $5,000 in March 2020 to over $60,000 by April 2021.

According to Bitcoin trading resource Bitcoinsensus, “Historically, a bearish DXY means one thing, bullish Bitcoin long term if the drop continues in the next coming weeks.”

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.