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Cryptocurrencies Heading Towards ‘Banana Singularity’ Where Everything Goes Up: Analyst
The next phase of the Banana Zone will be the altcoin season “when everything goes up” followed by a larger consolidation, says Real Vision CEO Raoul Pal.
Cryptocurrency markets are heading into a “banana singularity,” or a period “when everything goes up,” according to Raoul Pal, co-founder and CEO of Real Vision.
The "Banana Zone" is a term coined by Pal to describe a period of significant upward price movement.
“Yes, we are still in banana territory,” said major investor Raoul Pal on the X show on January 10, before adding that the first stage of this bull market was the breakout in November of last year.
This was followed by the current consolidation period - similar to the 2016/17 cycle - before adding: "This will not last long."
Looking ahead, Pal said the next phase of the “banana zone” is the “banana singularity” — the altcoin season “when everything goes up, followed by greater consolidation.”
Altseason usually comes after Bitcoin.
Bitcoin
Low indicators
$94,113
Dominance has declined, and currently, it remains high at 58%, according to TradingView.
In a separate post on X on January 10, DeFi researcher “0xNobler” seemed to agree with Pal, telling his 225,000 followers that “Bitcoin has just entered an exponential phase,” with a high prediction of a rally to $500,000, which would “ignite the biggest alt season in history.”
However, futures trader Coin Mamba was more pessimistic: “This sell-off is so bad that we will see a replacement season once prices return to where they were a week ago.”
Meanwhile, Pal said the third phase of the banana zone is “when the primary winners explode to much higher highs or the so-called concentration phase.”
Raul Pal predicts "second phase of banana zone". Source: Raul Pal
Despite this week’s market correction, crypto markets have gained 90% year-over-year in terms of total market capitalization, rising from around $1.8 trillion to current levels of $3.4 trillion after spending most of 2024 in consolidation.
Moreover, the total market cap reached an all-time high of $3.9 trillion on December 17, 27% higher than its peak in the previous cycle.
Markets
Total market cap of cryptocurrencies over one year. Source: CoinGecko
Last year, Raoul Pal correctly predicted that crypto markets would rally in September before emerging from the consolidation phase.
“As global liquidity increases, cryptocurrency prices will rise, as will other markets like Nasdaq,” he said at the time.
In a separate post on January 10, Pal shared charts depicting Bitcoin’s correlation to the global M2 money supply, showing similarities to the 2016/2017 cycle when it fell before rising again.
"It will be all right. Maybe a little lower or maybe it has already been done. Either way, it will be higher over time. Don't expect an exact repetition but a rhyme. Valhalla awaits."
Related: Bitcoin Whales Have Collected 34K BTC Since December: Analyst
Global Macro Investor (GMI) head of research Julian Pitel also predicted the emergence of a banana zone for Bitcoin, saying in June after four months of sideways trading for Bitcoin in 2024: “Basically, it’s the boring zone before the banana zone.”
Markets have been in banana territory since emerging from consolidation in early November in a move accelerated by Donald Trump's presidential election victory.
Bitcoin was still in a correction phase at the time of publication, having lost another 1.3% on the day to trade at $93,370, down about 9% from its weekly high of over $102,000 on January 7.
