Raoul Pal: “Bitcoin Enters the Banana Zone” — How High Could It Go?

▲ Bitcoin (BTC)

Global liquidity supply has expanded explosively. As a result, it is pushing the cryptocurrency market into an unprecedented parabolic rise—often referred to as the “banana zone”—signaling a massive shift of wealth.

According to Yahoo Finance on February 22 (local time), Raoul Pal, a former Goldman Sachs insider and founder of Real Vision, recently analyzed that the cryptocurrency market has entered a powerful bull cycle in tandem with the macroeconomic liquidity cycle. Pal explained that cryptocurrencies have historically reacted first and delivered record-breaking returns when global liquidity indicators bottomed out and rebounded. He noted that the current trend closely resembles previous periods marked by large-scale capital inflows.

Citing his “Everything Code” theory, Pal argued that central banks are facing structural constraints that leave them no choice but to increase money issuance to service national debts. Such monetary easing leads to the depreciation of fiat currencies, comparatively highlighting the value of Bitcoin (BTC), which has a limited supply. Pal projected that the expansion of central bank balance sheets will ultimately serve as a key driver accelerating capital inflows into the cryptocurrency market.

Optimistic outlooks extended beyond Bitcoin to major altcoins such as Solana (SOL) and Ethereum (ETH). Pal assessed that Solana has strong potential to emerge as a market leader by replicating the explosive growth Ethereum demonstrated in the past. He emphasized that cryptocurrencies are evolving beyond speculative assets to become infrastructure for the future financial system, and as institutional participation accelerates, the market capitalization could grow to unimaginable levels.

Once the market enters the so-called banana zone—where upward momentum accelerates—prices can surge vertically, delivering returns that far exceed most investors’ expectations. Pal believes there remains substantial upside, noting that investor sentiment has yet to reach extreme optimism. He advised focusing on the broader liquidity expansion cycle rather than short-term volatility, maintaining portfolios with a long-term perspective.

The cryptocurrency market is passing through a major inflection point driven by shifts in monetary policy and accelerating adoption by mainstream finance. Pal’s optimistic scenario is gaining market credibility against the macro backdrop of expanding global liquidity. Future price trajectories for digital assets are expected to depend on the fiscal policy direction of major economies and the actual pace of institutional capital inflows.

Disclaimer: This article is for investment reference only and does not assume responsibility for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.