Author: Martin Young, CoinTelegraph; Translator: Taozhou, Jinse Finance
Raoul Pal, co-founder and CEO of Real Vision, says the cryptocurrency market is entering the "banana singularity" or a period of "everything is going up".
"Banana zone" is a term coined by Pal to describe a period of sharp price increases.
"Yes, we are still in the banana zone," the macro investor Raoul Pal said on X on January 10, adding that the first phase of this bull market was the breakout in November last year.
Pal said the current consolidation period is similar to the 2016/2017 cycle, and added: "It won't last too long."
Looking ahead, Pal said the next stage of the "banana zone" is the "banana singularity" - a season of Altcoins "where everything is going up, followed by a bigger consolidation".
The Altcoin season usually comes after a decline in Bitcoin's dominance, which currently remains high at 58% according to TradingView data.
In another X post on January 10, DeFi researcher "0xNobler" seemed to agree with Pal, telling his 225,000 X followers that "Bitcoin has just entered the acceleration phase" and predicted that Bitcoin will skyrocket to $500,000, which will "ignite the biggest Altcoin season in history".
However, futures trader "CoinMamba" was more pessimistic: "This selloff is too bad, we'll only see the Altcoin season when prices return to a week ago's level."
Meanwhile, Pal said the third stage of the banana zone is the "core winners exploding, making new highs or 'concentration phase'".
Raoul Pal's forecast for the "second stage of the banana zone". Source: Raoul Pal
Although the market has seen some adjustments this week, the total market capitalization of the Cryptocurrency market has grown 90% year-over-year, rising from around $1.8 trillion to the current $3.4 trillion after spending most of 2024 in a consolidation phase.
Additionally, the total market cap hit a new all-time high of $3.9 trillion on December 17, 27% higher than the previous cycle's peak.
Cryptocurrency market capitalization over the past year. Source: CoinGecko
Last year, Raoul Pal correctly predicted that the Cryptocurrency market would rise in September, before breaking out of the consolidation.
"As global liquidity increases, Cryptocurrencies will rise, as will other markets like Nasdaq," he said at the time.
In another article on January 10, Pal shared a chart depicting the correlation between BTC and global M2 money supply, showing similarities to the 2016/2017 cycle, where BTC first declined and then rallied.
"Everything is going to be fine. Maybe a little lower, maybe it's already done. Anyway, it will go higher over time."
Julien Bittel, head of global macro research at GMI, also predicted that BTC will enter the banana zone, stating in June that "basically, this is the dormant zone before the banana zone", after BTC experienced four months of sideways trading in 2024.
Since the market breakout from consolidation in early November, it has been in the banana zone, with Donald Trump's presidential election victory accelerating the process.
As of the time of writing, BTC is still in correction, falling a further 1.3% on the day, trading at $93,370, down about 9% from the weekly high of around $102,000 on January 7.
