Bitcoin recently fell more than two standard deviations below its historical mean relative to the Nasdaq before staging a sharp rebound, according to Raoul Pal, co-founder of Real Vision and a prominent macro investor. The Bitcoin/Nasdaq relative strength indicator compares Bitcoin’s performance with a basket of major technology stocks, and such an extreme reading is statistically rare. Pal said similar conditions have historically preceded strong rebounds, although he cautioned that it is too early to draw definitive conclusions, that any recovery could take time and that technical signals should not determine investment decisions on their own. He believes the long-term risk-reward may favor cryptocurrencies and that digital assets could outperform the Nasdaq, while noting that macroeconomic conditions, interest-rate expectations, investor risk appetite and the Nasdaq’s AI-driven performance remain important variables.