Bitcoin's supremacy potentially reached its zenith, hinting at an approaching altcoin era according to Raoul Pal.
Crypto Chaos Amplifies: Bitcoin breached the $100k barrier on May 8, adding a whopping $300 billion to the crypto market cap and setting tongues a-wagging about the next crypto moves.
This epic milestone spurred vigorous discussions on whether Bitcoin and altcoins will be taking a hike or a plunge. Let's dive into the buzz.
Banana Time? Bitcoin's Dip Could Equate to Altcoins' Spike
Raoul Pal, a seasoned investor and Real Vision's founder, suspects the peak of Bitcoin Dominance (BTC.D) hit on May 8, 2025. TradingView data validates his stance, revealing a staggering drop from 65.3% to below 64% within just two days—the steepest decline in two whole months.
But Pal's observation goes further. Offering a broader perspective, he notes this peak is lower than previous highs in 2021 and 2017, conforming to historical standards. He prognosticates that this could presage the incoming "Banana Phase"-a term he coined to denote a wild, banana-shaped rise in crypto prices on the chart.
"Mark my words: I reckon BTC dominance topped today. There are daily, weekly, and monthly DeMark tops in place. The top is way below 2021's top, which itself was below the 2017 top. If that plays out, it's a classic hint for the approaching Banana Phase," Raoul Pal foretells.
Interestingly, the Banana Phase usually kicks off an altcoin craze, inspiring investors to transfer their funds from Bitcoin to altcoins in quest of fat returns.
However, not everyone is on board with Pal's outlook. Analyst Mark Harvey challenges his stance on X, positing that Bitcoin Dominance is en route to 100%. Harvey advocates that the ascent of cryptocurrency-based Bitcoin ETFs and robust institutional inflows will fortify Bitcoin's dominance.
Altcoin Season Index Hits Two-Month Summit
On a different note, CoinMarketCap's Altcoin Season Index has scaled to a two-month high of 41, despite being below the defining 75-point threshold for the onset of altcoin season. The index vacated the Bitcoin season zone and inched closer to neutral territory, signaling a resurrection of optimism.
Merlijn The Trader, a respected analyst, backs the assertion that altcoin season has sprouted. He bases his conviction on Blockchain Center's index version and argues that it defied months-long resistance recently. He adds that Tether Dominance (USDT.D) is trending south, which, in his opinion, implies a prime setup for altcoin season.
"Alright folks, I've got news for you. Altcoin season signal has triggered... The index just snapped a multi-month downtrend. Bitcoin season dominance is slipping. If you're not positioned now, you'll be short of exit liquidity later. Alts are gearing up," Merlijn The Trader shares.
These contrasting opinions underscore the volatile nature of the crypto market, creating a sense of anticipation. Will altcoins scramble to steal Bitcoin's thunder, or will the big daddy continue to reign supreme? Prepare for a rollercoaster ride as the market unfolds under the influence of macroeconomic forces and the evolving tide of investor sentiment.
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- Raoul Pal, the founder of Real Vision, believes that Bitcoin's dominance (BTC.D) peaked on May 8, 2025, as indicated by a sudden drop in percentage, which could signal the start of the "Banana Phase" in the crypto market.
- The Banana Phase, as coined by Raoul Pal, is characterized by a wild, banana-shaped rise in crypto prices on the chart, potentially triggering an altcoin craze.
- Contrary to Raoul Pal's view, analyst Mark Harvey suggests that Bitcoin Dominance is headed towards 100%, attributing this to the increasing influx of cryptocurrency-based Bitcoin ETFs and institutional investments.
- The Altcoin Season Index, curated by CoinMarketCap, has reached a two-month high of 41, despite falling short of the 75-point threshold that initiates the altcoin season.
- Merlijn The Trader, a respected analyst, supports the idea that the altcoin season has begun, pointing towards the breaking of a multi-month downtrend in the index and the falling trend of Tether Dominance (USDT.D).
- The evolving opinions in the crypto market, such as those of Raoul Pal and Merlijn The Trader, underline the market's volatile nature, stirring anticipation among investors.
- As the crypto market shifts under the influence of macroeconomic forces and investor sentiment, it remains uncertain whether altcoins will challenge Bitcoin's dominance or if Bitcoin will continue to reign supreme.
- To prepare for the rollercoaster ride that the crypto market might offer, investors might consider backed-up crypto assets through affiliate partners like eToro, YouHodler, Wirex, NEXO, and Arkham.
- It is essential for investors to verify the facts and seek professional advice before making investment decisions, as the crypto market can be unpredictable and subject to rapid changes.
