According to Raoul Pal, co-founder and CEO of Real Vision, the cryptocurrency market is in a “banana zone” and heading towards a “banana singularity,” a period when “everything is going up.”
“Banana zone” is a term coined by Pal to describe a period of significant price increases.
“Yes, we are still in the banana zone,” macro investor Raoul Pal told X on January 10, adding that the first step in this bull market was the breakout in November last year.
This was followed by the current consolidation period, similar to the 2016/2017 cycle. “This won’t last long,” Pal added.
Looking ahead, Pal said the next phase of the “banana zone” is the “banana singularity,” an altcoin season where “everything goes up, followed by greater consolidation.”
Alt seasons typically come after Bitcoin (BTC) dominance has declined, and currently remains high at 58%, according to TradingView.
In a separate X post on January 10, DeFi researcher 0xNobler appears to agree with Pal. “Bitcoin has just entered an acceleration phase,” he told his 225,000 X followers. “Bitcoin has just entered an acceleration phase.” history.”
But futures trader CoinMamba was more pessimistic. “This sell-off is so severe that it would be an alt season just for prices to return to where they were a week ago.”
Meanwhile, Pal said the third phase of the banana zone is “the phase where key winners explode and achieve even higher highs – the ‘focus phase’.”
Raoul Pal predicts “Banana Zone Phase 2” source: Raoul Pal
Despite this week’s market correction, the cryptocurrency market is up 90% year-over-year in terms of total capitalization, increasing from around $1.8 trillion to its current level of $3.4 trillion after spending most of 2024 consolidating. I did it.
Additionally, total market capitalization hit an all-time high of $3.9 trillion on December 17, which is 27% higher than the previous cycle’s high.
This is the total cryptocurrency market capitalization for one year. source: CoinGecko
Last year, Raoul Pal correctly predicted that the cryptocurrency market would rise in September before coming out of consolidation.
“As global liquidity increases, cryptocurrencies will rise and so will other markets such as Nasdaq,” he said at the time.
In a separate post on January 10, Pal shared a chart illustrating the correlation between Bitcoin and the global M2 money supply, showing similarities between the 2016/2017 cycle when Bitcoin fell before rising again.
“Everything will be okay. Maybe it’s a little lower, maybe it’s already done. Either way, it gets higher over time. Don’t expect rhyme, not exact repetition. Valhalla awaits.”
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A Bitcoin banana zone was also predicted by Global Macro Investor (GMI) head of research Julien Bittel, who said June 2024 would be “basically a boring zone before a banana zone” following sideways trading for BTC.
The market has been in a banana zone since consolidation began in early November, a move accelerated by Donald Trump’s presidential election victory.
BTC was still correcting at the time of the announcement and lost another 1.3% on the day, trading at $93,370, down about 9% from its weekly high of $102,000 on January 7.
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