Heading to the ‘Banana Singularity’ where everything goes up: analyst
According to Raoul Pal, co-founder and CEO of Real Vision, Crypto markets are heading towards the “Banana Singularity” zone, or a period where “everything goes up.”
“Banana Zone” is a term coined by Pal to describe a period of significant price movement.
“Yes, we are still in the banana zone,” said macro investor Raul Pal on January 10 at X. The first stage of this bull market was in November last year.
Following that is the current period of consolidation – similar to the 2016/2017 cycle – which Pal said, “will not last long.”
Looking ahead, Pal said the next stage of the “Banana Zone” is the “Banana Singularity” – the altcoin era when “everything goes up and gets stronger.”
Altseason usually comes after Bitcoin (BTC)'s dominance declines, and currently, it's at a 58% high, TradingView reports.
In a separate X post on January 10th, Diffie researcher ‘0xNobler' seemed to agree with Pal, telling his 225,000 X followers that “Bitcoin has now entered an acceleration phase”, predicting a massive $500,000 pump that will “fuel this” biggest auction in history.
However, futures trader ‘CoinMamba' was more pessimistic: “This sell-off is so bad that we're going to go back to where it was a week ago and have a price drop.”
Meanwhile, Pal says the third phase of the Banana Zone is “when the major winners explode and reach a very high level or ‘concentration level'.”
Raul Paul predicts “Banana Zone Phase 2”. Source: Raoul Pal
Despite this week's market correction, crypto markets have gained 90% year-over-year in terms of total capitalization, rising from around $1.8 trillion to $3.4 trillion after spending most of 2024 consolidating.
In addition, total market capitalization reached an all-time high of $3.9 trillion on December 17, up 27 percent from the previous cycle's peak.
Total crypto market capitalization over one year. Source: CoinGecko
Last year, Raoul Pal correctly predicted that crypto markets would rise in September before they exited the merger.
“As global money increases, as other markets such as the Nasdaq increase, cryptocurrencies will increase,” he said.
In a separate post on January 10, Pal shared charts showing Bitcoin's relationship to the global M2 money supply, showing similarities between the 2016/2017 cycle as it dipped before rebounding.
“Everything will be fine. Maybe a little lower or maybe already done. In any case, the maximum over time. Don't expect exact repetition, but rhyme. Valhalla awaits.
Related: Bitcoin whales add 34K BTC since December: analyst
The Bitcoin Banana Zone is predicted by Global Macro Investor (GMI) Head of Research Julien Bittel, “essentially the boring zone before the Banana Zone” in 2024 following four months of sideways trading for BTC in June.
Markets have been in a banana zone since the rally in early November, spurred by Donald Trump's presidential election win.
BTC was still correcting at press time, having lost a further 1.3% on the day to trade at $93,370, down 9% from its weekly high of over $102,000 on January 7.
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