According to Real Vision’s co-founder and CEO Raoul Pal, the crypto market is approaching a phase where prices across all assets may experience significant growth – often referred to as a time when “everything skyrockets.” This phenomenon has been humorously dubbed the “Banana Singularity” zone.
The “Banana Zone,” as named by Pal, refers to a timeframe characterized by noticeable and positive price surges.
In response to your query, “Raoul Pal, a macro investor, stated during his appearance on X on January 10th, that we are indeed still within what he calls the ‘Banana Zone.’ He further explained that the initial phase of this bull market began with a significant breakout in November of the previous year.
Pal stated that this ongoing phase resembles the consolidation period seen in 2016-2017, and then he mentioned: “It won’t persist for much longer.
As we move forward, Pal explained that the upcoming stage for “Banana Zone” is referred to as “Banana Singularity” – this signifies a period of increased activity for altcoins, where prices surge and then stabilize following a more significant consolidation.
Typically, Altseasons occur when Bitcoin’s (BTC) dominance decreases, but currently, its dominance is still holding strong at approximately 58%, as per TradingView. This implies that the time for alternative cryptocurrencies to shine might not be immediate.
In a distinct post on January 10th, I too found myself aligning with Pal’s views as the DeFi researcher ‘0xNobler’ expressed to his 225,000 followers that Bitcoin has entered an accelerated phase. Remarkably, he foretold a substantial increase in value up to $500,000, suggesting this surge could spark the most monumental altcoin season ever recorded in history.
As a fellow crypto investor, I must confess I’m feeling quite optimistic about the current market conditions. However, from my perspective, CoinMamba seems to be viewing this selloff in a different light. He suggests that if prices simply revert to their levels of a week ago, it could trigger an altseason – a period of increased activity and potential price growth for alternative cryptocurrencies.
In simpler terms, Pal described the third stage of Banana Zone as “the point where the leading players experience significant growth and reach new peak levels, which we call ‘the expansion phase.’
In contrast to this week’s market adjustments, the overall value of cryptocurrencies has risen by an impressive 90% compared to last year. This increase has taken the total capitalization from approximately $1.8 trillion to its current level of $3.4 trillion. For most of 2024, the crypto markets were in a phase of consolidation before reaching these figures.
Furthermore, the overall market capitalization attained a record-breaking level of $3.9 trillion on December 17, representing a 27% increase compared to its highest point during the prior growth phase.
In retrospect last year, I found myself in agreement with Raoul Pal’s prediction about the cryptocurrency market. He accurately foresaw an upsurge in September, just as the market was breaking free from its consolidated phase.
He stated that as global funds increase, the value of cryptocurrencies is likely to grow, along with markets such as the Nasdaq.
On January 10th, Pal posted separately some graphs illustrating Bitcoin‘s relationship to the worldwide M2 money supply. These charts highlighted patterns that mirrored the 2016-2017 period, during which Bitcoin briefly decreased prior to a subsequent increase.
“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.”
According to Julien Bittel, the head of research at Global Macro Investor (GMI), a period of relative stability or “Boring Zone” for Bitcoin was forecasted in June 2024, after four months of sideways trading. Essentially, he suggested that this phase would precede what he referred to as the “Banana Zone.
Since their breakout from consolidation in early November, spurred on by Donald Trump’s presidential election win, markets have found themselves in a ‘Banana Zone,’ indicating an extended period of volatility and uncertainty.
At the point of this article’s release, Bitcoin was continuing its correction, dropping an additional 1.3% to reach a price of approximately $93,370. This represents a decrease of nearly 9% from its weekly peak of slightly over $102,000 that was achieved on January 7th.
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2025-01-10 07:36