Raoul Pal, the founder of macro research firm Real Vision and former executive at Goldman Sachs, has made a bold prediction about the future of Bitcoin. In a recent social media post, Pal suggested that Bitcoin is on the verge of breaking through a significant cup-handle pattern and entering what he refers to as the “banana range.”
The term “banana range” is a concept often discussed by Arthur Hayes and other prominent figures in the cryptocurrency industry. It represents a highly cyclical stage when liquidity floods the market, and central banks are required to refinance all debts, using incentives to appease the masses. During this phase, cryptocurrencies typically experience a vertical surge.
This cycle, driven by macroeconomic forces, impacts all asset prices. However, cryptocurrencies, in particular, stand out due to their exceptional performance. Pal advises investors not to complicate their investment strategies during this period. He recommends maintaining a core portfolio with the majority of assets allocated in major cryptocurrencies.
Pal believes that if investors can effectively manage their investments in other assets, they could reap substantial profits from the 10-20% of their portfolio that carries higher risks but offers greater returns.
This is not an investment advice.
