Crypto sentiment remains bruised, but Real Vision CEO Raoul Pal says the long-term setup for Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL) and Sui (CRYPTO: SUI) remains intact.

However, the artificial intelligence-linked assets look increasingly stretched.

“Layer-1s Are Still The Place To Be“

In a "Drinks With Raoul Pal" episode on June 26, Pal acknowledged that crypto markets have been painful for investors, saying the asset class has not been "the gift that keeps on giving" over the past year.

Still, Pal said he remains heavily allocated to crypto and continues to believe that major layer-1 networks are the core opportunity.

"I strongly believe in my thesis that the layer ones are still the place to be," Pal said, naming ETH, SOL and SUI among the assets he continues to watch closely.

Pal argued that blockchain infrastructure remains central to the next phase of the internet, particularly as AI agents require payment rails, identity, privacy and coordination layers.

Liquidity Is Turning Positive 

Pal contrasted crypto’s weakness with the sharp rally in semiconductor and AI-related stocks, saying parts of the AI trade now look heavily overextended.

He said semiconductors are trading nearly four standard deviations above their long-term trend, making it difficult for them to remain the market’s next leadership group.

By comparison, Pal said Ethereum and Sui appear far more attractive on a relative basis, with ETH near the bottom of a long consolidation range and SUI trading well below its trend channel.

Pal also pointed to global liquidity as the underlying driver of financial assets, arguing that liquidity remains in an uptrend even though the crypto market has not yet fully responded.

He said excess liquidity is beginning to turn positive again, which could eventually support risk assets beyond the current AI winners.

“Great Rotation” To Come

Pal said he expects a “great rotation” across markets, with leadership potentially shifting away from the most crowded AI trades and toward assets that have lagged, including crypto layer-1s.

He warned investors not to confuse short-term pain with a broken thesis, arguing that the most important investing gains usually come from compounding through long-term secular trends rather than trading every market swing.

Pal added that investors need a framework, a thesis and the discipline not to panic during drawdowns.

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