Raoul Pal, CEO of Real Vision shared that we’re entering a wild phase in the crypto market that he calls the Banana Zone, and it’s about to get bananas, literally!
Pal predicts that we’re heading towards a Banana Singularity, where alts will skyrocket and everything in the crypto world goes up.
Banana Republic
So, what’s this Banana Zone all about? It’s Pal’s fun term for a period when prices are going through the roof. He took to X to announce that we’re still in this zone, which kicked off with a breakout last November. What comes next?
A consolidation phase, much like what we saw back in 2016-2017, but Pal warns this phase won’t last too long.
He’s looking ahead to what he calls the Banana Singularity, or an altseason where everything skyrockets before another consolidation phase hits.
Historically, altcoin seasons follow a dip in Bitcoin dominance, which is currently sitting high at 58%.
Big predictions and mixed feelings
In another post, DeFi researcher 0xNobler chimed in, suggesting Bitcoin is entering an acceleration phase and predicting a massive pump to $500,000 that could ignite the biggest altseason ever.
I don’t know if that’s nuts, or banana. As always, not everyone is sipping the Kool-Aid, futures trader CoinMamba expressed skepticism, saying the current sell-off might just bring prices back to where they were last week.
Pal also mentioned that the third phase of this Banana Zone will see core winners explode in value, he calls it the concentration phase.
Crypto is thriving
Even with some market corrections, crypto has been on fire in the past months, and total market capitalization has jumped 90% year-on-year, from around $1.8 trillion to $3.4 trillion after spending much of 2024 consolidating.
Pal has a knack for predictions, as he correctly forecasted a rise in crypto markets last September as global liquidity increased. He even shared charts showing Bitcoin’s correlation with global money supply, hinting at similarities with past cycles.
While some analysts like Pal are feeling bullish, worth to mention others are cautious. Global Macro Investor head of research Julien Bittel pointed out that we’ve been in this Banana Zone since early November after breaking out of consolidation, thanks in part to Trump’s election victory.
