Author: Martin Young, CoinTelegraph; Compiler: Tao Zhu, Golden Finance

Real Vision co-founder and CEO Raoul Pal said that the cryptocurrency market is entering the "banana singularity" area, or The “everything goes up” period.

"Banana Zone" is a term coined by Pal to describe a period of significant price increases.

“Yes, we are still in the banana zone,” macro investor Raoul Pal said on X on January 10, adding that the first phase of this bull market was the breakout last November .

This will be followed by the current period of consolidation - similar to the 2016/2017 cycle, Pal said, adding: "This won't last long."

Looking ahead, Pal said the next phase of the “Banana Zone” is the “Banana Singularity” — an altcoin season where “everything goes up, followed by greater consolidation.”

Altcoin season typically follows a decline in Bitcoin dominance, which currently remains as high as 58%, according to TradingView.

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 an acceleration phase" and Bitcoin is predicted to surge to $500,000, which will “ignite the biggest altcoin season in history.”

However, futures trader "CoinMamba" is more pessimistic: "This sell-off is too bad, as long as the price returns to the level of a week ago, we will have an altcoin season."

Meanwhile, Pal said the third phase of the Banana Zone is when "core winners explode to higher highs or a 'concentration phase.'"

Raoul Pal predicts "Banana Zone Phase 2". Source: Raoul Pal

Despite this week's market correction, the total cryptocurrency market capitalization has increased by 90% year-on-year, from approximately 1.8 trillion after being in a consolidation phase for most of 2024. The dollar climbed to its current level of $3.4 trillion.

Additionally, total market capitalization hit an all-time high of $3.9 trillion on December 17, 27% higher than the previous cycle’s peak.

Total capitalization of the cryptocurrency market in one year. Source: CoinGecko

Last year, Raoul Pal correctly predicted cryptocurrenciesThe market will rise in September before breaking out of the consolidation.

“As global liquidity increases, cryptocurrencies will rise, and so will other markets such as Nasdaq,” he said at the time.

In another post on January 10, Pal shared a chart depicting Bitcoin’s correlation with the global M2 money supply, showing similarities to the 2016/2017 cycle, when Bitcoin The currency first fell and then rose again.

"Everything will be fine. Maybe a little lower, maybe it's done. Regardless, over time it will go higher."

Global Macro Investors ( Julien Bittel, director of research at GMI, also predicted that Bitcoin would enter the banana zone, saying in June that "basically, this is the silence zone before the banana zone," after BTC experienced four months of sideways trading in 2024.

Markets have been in banana territory since breaking out of consolidation in early November, a process accelerated by Donald Trump's presidential election victory.

As of the time of publication, BTC is still recovering, falling a further 1.3% on the day to trade at $93,370, down around 9% from its weekly high of just over $102,000 on January 7.