Raoul Pal states that the weakening US dollar will likely boost the cryptocurrency market in Q2 2025, coinciding with increased interest in Bitcoin, which has recently increased by nearly 6%. The falling US Dollar Index (DXY) could indicate a bullish phase for cryptocurrencies.

Historically, a bearish DXY has correlated with rising Bitcoin prices. As the DXY declined by 2.79% since February 5, 2025, it suggests that investors might shift toward cryptocurrencies as viable alternatives in response to a weakening dollar.