Macroeconomic expert Raoul Pal took the stage in Dubai with a bold message: we’re entering what he calls the “Banana Zone” — the most explosive phase of the market cycle. With global liquidity rising and investor sentiment hitting new lows, Pal believes the stage is set for a historic bull run. And yes, crypto is right at the center of it.
His advice? Ignore the fear, follow the money, and prepare for what could be a once-in-a-cycle opportunity.
According to Pal, the Banana Zone is where market momentum goes into overdrive. It’s a phase driven by a surge in global liquidity and panic-level sentiment – conditions that often lead to massive gains.
Pal stressed the importance of liquidity in driving asset prices. He pointed out that 90% of Bitcoin’s price movements, and 97% of Nasdaq’s, are linked to liquidity changes – not news, hype, or even fundamentals.
Pal warned that most people are losing purchasing power every year, often without realizing it. Between currency debasement (8%) and global inflation (3%), wealth shrinks by at least 11% annually.
To stay ahead, Pal says you need investments that grow faster than inflation. That’s where crypto comes in.
With housing prices out of reach for many, especially millennials, Pal believes this generation is seeking alternatives to traditional investing. Crypto offers a way out of the system – despite its volatility.
And the returns support that mindset. Since 2012, Bitcoin has delivered an average yearly return of 130%. Over the past year alone, the crypto market grew by 48.4%. In just the last 30 days, Bitcoin jumped 13.3%, hitting around $94,600, with an 8.2% increase in the past 14 days.
A Setup Similar to 2020 and 2009
Pal sees clear similarities between today’s market and key moments in 2020 and 2009. Right now, retail investors are already buying in, but institutions haven’t made their move yet. When they do, he expects the market to accelerate even faster.
According to Pal, the Bitcoin market is currently in the third phase of his Banana Zone framework—the Mania Phase. During this phase, Bitcoin and altcoins could experience massive growth. Pal predicts Bitcoin could reach between $250K and $450K in this cycle, with altcoins possibly seeing 20x gains, similar to the 2017 bull run.
To make the most of this phase, Pal shared a few key strategies for investors:
His message is clear: those who understand the macro picture and position themselves early could be in for major gains.
Raoul Pal says 90% of Bitcoin’s movements track liquidity—more liquidity means higher asset prices.
It’s the second phase of the Banana Zone, where altcoins experience massive gains, often referred to as “altseason.”
High housing costs push millennials toward crypto, seeking better returns despite volatility and fewer barriers to entry.
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