Crypto markets are heading into a “Banana Singularity” zone, or a period “when everything goes up,” according to Real Vision co-founder and CEO Raoul Pal.
The “Banana Zone” is a term coined by Pal to describe a period of significant upward price movement.
“Yes, we are still in the Banana Zone,” macro investor Raoul Pal said on X on Jan. 10 before adding that the first phase of this bull market was the breakout in November last year.
That has been followed by the current period of consolidation — similar to the 2016/2017 cycle — said Pal, before adding: “This won’t last long.”
Looking ahead, Pal said the next phase of the “Banana Zone” is “Banana Singularity” — an altcoin season “when everything goes up followed by a bigger consolidation.”
Altseason usually comes after Bitcoin (BTC) dominance declines, and at the moment, it remains high at 58%, according to TradingView.
In a separate X post on Jan. 10, DeFi researcher ‘0xNobler’ seemingly concurred with Pal, telling his 225,000 X followers that “Bitcoin just entered the acceleration phase,” with a huge prediction of a pump to $500,000, which will “ignite the biggest altseason in history.”
However, futures trader ‘CoinMamba’ was more pessimistic: “This selloff is so bad that we will have an altseason just by prices going back to what it was one week ago.”
Meanwhile, Pal said the third phase of the Banana Zone is “when the core winners explode on to make much higher highs or the ‘concentration phase.’”
Raoul Pal predicts “Banana Zone Phase 2”. Source: Raoul Pal
Despite this week’s market correction, crypto markets have gained 90% year-on-year in terms of total capitalization, which has climbed from around $1.8 trillion to current levels of $3.4 trillion after spending most of 2024 in consolidation.
Additionally, total market capitalization reached an all-time high of $3.9 trillion on Dec. 17, 27% higher than its peak in the previous cycle.
Total crypto market capitalization over one year. Source: CoinGecko
Last year, Raoul Pal correctly predicted that crypto markets would rise in September before they broke out from consolidation.
“As global liquidity rises, cryptocurrencies will rise, as will other markets like the Nasdaq,” he said at the time.
In a separate post on Jan. 10, Pal shared charts depicting Bitcoin’s correlation with global M2 money supply, showing similarities between the 2016/2017 cycle when it dipped before climbing again.
“It’s all going to be just fine. Maybe a bit lower or maybe it’s done already. Either way, higher over time. Don’t expect an exact repeat but a rhyme. Valhalla waits.”
A Bitcoin Banana Zone was also predicted by Global Macro Investor (GMI) head of research Julien Bittel, who said, “Basically, it’s the boring zone before the Banana Zone,” in June following four months of sideways trading for BTC in 2024.
Markets have been in the Banana Zone since they broke out of consolidation in early November in a move accelerated by Donald Trump’s presidential election victory.
BTC was still correcting at the time of publication, having lost a further 1.3% on the day to trade at $93,370, around 9% down from its weekly high of just above $102,000 on Jan. 7.
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