Raoul Pal, co-founder and CEO of Real Vision, recently shared an in-depth analysis of Bitcoin, the world’s largest cryptocurrency. He revealed an important market phenomenon he calls the “Banana Effect.” This suggests a potential new bull market phase for Bitcoin following a price correction.
In a post on X (formerly Twitter) on April 28, Pal presented an annual chart illustrating Bitcoin’s price movements from October 2023 to April 2024. Despite the current Bitcoin price being below the $60,000 mark, with a monthly decline of 15.12%, Raoul Pal pointed out that this adjustment phase might be the critical moment when the market is gearing up for a new upward trend.

Pal uses the term “Banana Effect” to describe a phase of high market excitement and the potential for significant price surges. He predicts that once this zone begins, Bitcoin’s price could accelerate by the end of the year and continue to rise into 2025, potentially reaching a new peak of frenzy.

Pal’s historical chart analysis indicates that each significant Bitcoin surge is closely related to the emergence of the “Banana Effect.” He emphasizes that price spikes and the enthusiastic pursuit of new large L1 or L2 projects characterize this period. These projects have the potential to bring explosive growth comparable to existing projects like SOL.

“We are at a turning point,” Raoul Pal wrote in his post. “Politicians tend to ‘hand out candy’ in the form of stimulus plans during election periods, which can lead to higher inflation, thereby driving up the prices of digital assets.” He further noted that the influx of liquidity and capital could bring new opportunities to the cryptocurrency market with the global economic recovery and the introduction of government stimulus policies.

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