Bitcoin's (CRYPTO: BTC) has imploded 15% over the past week, plunging below $62,000 in early morning hours Thursday.

Yet, macro investor Raoul Pal says this is not the start of a bear market but rather another painful correction within a broader bull cycle.

"Nasty Correction In A Bull Market"

Speaking on the "When Shift Happens" podcast the previous week, Pal argued that Bitcoin has historically experienced multiple 50% drawdowns during bull markets and that the current weakness is following a familiar pattern.

"It’s a nasty correction in a bull market," Pal said.

The investor pointed to past examples where assets like Bitcoin, Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) experienced steep pullbacks before eventually making significantly higher highs.

Unlike previous cycles, Pal acknowledged the current correction has been prolonged and choppy rather than a sharp crash followed by a rapid recovery.

Also, some market participants have questioned whether the traditional four-year crypto cycle remains intact as stablecoins, tokenization and real-world asset adoption become increasingly important drivers of growth.

Bigger Bullish Thesis

Pal remains optimistic on crypto's long-term outlook, arguing that liquidity conditions and global investment trends continue supporting the sector.

He believes artificial intelligence, data-center construction and broader infrastructure spending could eventually create a new wave of capital flows into digital assets.

More importantly, Pal says investors may be overlooking one of crypto's largest opportunities which is owning the blockchain infrastructure powering tokenization and on-chain finance.

As stablecoins, tokenized assets and AI-driven financial systems increasingly move onto blockchain rails, Pal argues the most straightforward investment thesis is owning the underlying layer-1 networks facilitating that activity.

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