Economist predicts Crypto market is about to have a strong price increase
Macroeconomic expert Raoul Pal took the stage in Dubai with a bold message: We are 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.”
His advice? Let go of fear, go after the money, and prepare for opportunities that may come your way only once in a lifetime.
What is Banana Zone?
According to Pal, the Banana Zone is where market momentum accelerates. This is a period driven by increased global liquidity and panic – conditions that often lead to large gains.
Pal emphasized the importance of liquidity in driving asset prices higher. He pointed out that 90% of Bitcoin’s price movements and 97% of Nasdaq’s are related to changes in liquidity — not news, hype, or even fundamentals.
Inflation is silently draining your wealth
Pal warns that most people lose purchasing power every year, often without realizing it. Between currency devaluation (8%) and global inflation (3%), assets decline by at least 11% each year.
To stay ahead, Pal said “people need investments that grow faster than inflation.” And that’s where cryptocurrencies should be in everyone’s portfolio.
Why Millennials Are Turning to Cryptocurrency
With home prices out of reach for many, especially Millennials, Pal believes this generation is looking for alternatives to traditional investments and cryptocurrencies are one of the top investment channels today.
Since 2012, Bitcoin has returned an average of 130% annually. Over the past year alone, the cryptocurrency market has grown by 48.4%. In the past 30 days alone, Bitcoin has gained 13.3% to around $94,600, with an 8.2% gain over the past 14 days.
Pal sees clear parallels between today’s market and key moments in 2020 and 2009. Right now, retail investors are buying, but institutions are holding back. As more institutions enter the market, he expects “the market to accelerate even faster.”
Welcome to the Mania stage
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 strong growth. Pal predicts that “Bitcoin could reach $250,000 to $450,000 in this cycle,” with altcoins potentially increasing 20-fold, similar to the 2017 bull run.
To make the most of this period, Pal shared some key strategies for investors:
Stay calm and don't let FOMO dictate your decisions.
Stay away from leverage
Keep your crypto assets safe
Monitor liquidity trends and use macro tools
Pal's message is clear: those who understand the big picture and position themselves early can reap big returns.