According to BlockBeats, on July 29, Raoul Pal, former Goldman Sachs executive and founder of macro research firm Real Vision, stated on social media that Bitcoin is on the verge of breaking through a significant cup-and-handle pattern and entering what he refers to as the 'banana zone.'
Raoul Pal previously explained that the 'banana zone' is a concept frequently discussed by Arthur Hayes and himself. It represents a highly cyclical phase where, as liquidity enters the market and central banks need to refinance all debt, they use incentives to appease the public. During this period, cryptocurrencies typically experience vertical growth. This phase is driven by macroeconomic forces related to the debt refinancing cycle, which impacts all asset prices, but cryptocurrencies tend to perform exceptionally well. The simplest strategy, according to Pal, is to avoid making mistakes. He advises maintaining a core investment portfolio with the majority allocated to major cryptocurrencies. If investors can make the right moves with other assets, they can earn substantial returns on the 10-20% of their portfolio allocated to higher-risk, higher-reward investments.
