Altcoin “Banana Zone” Fizzles as Bitcoin Dominance and High Yields Stifle Rally
Bitcoin has reached new all-time highs but altcoins remain stagnant, weighed down by token unlocks and lack of compelling narratives.
Traditional patterns where Bitcoin rallies lead to altseasons may no longer apply in an environment with attractive 4.5 per cent bond yields.
Some analysts like Michaël van de Poppe remain bullish, suggesting patience is needed as current valuations present buying opportunities.
The “banana zone” is a term thrown around a lot on Crypto Twitter. It’s supposed to mean that a massive altcoin season is unfolding.
Real Vision’s chief executive and crypto commentator Raoul Pal said back in March that, by the end of the month, “we should start to see price accelerate and then in April, May and June we should see some really significant price action as the second phase of the banana zone kicks in.”
Despite predictions like these, analysts at 10X Research say that “reality has delivered a slow grind.”
The analysts added that, although Bitcoin has hit new all-time highs, “altcoins are stuck in neutral, weighed down by relentless unlocks and a narrative void.”
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Experts Say Old Rules No Longer Apply
So, lessons of the past – where a Bitcoin rally is followed by an altseason – may no longer be applicable, as even Ether has had a difficult time recently.
The old playbook of hype and leverage isn’t working in a world of 4.5% bond yields. Even Ethereum, once the heart of crypto innovation, has settled into staking for a modest yield.
You can see from the chart below that altcoins just aren’t keeping pace with the big fella – Bitcoin.
Altcoin Market Cap (LHS) compared to Bitcoin Market Cap (RHS), in trillion USD, source: 10X Research
Investors seem to think twice about putting money into risky bets when they can get something like a 4–5 per cent annual return in a relatively safe government or corporate bond, meaning that investing in highly volatile, speculative assets like altcoins becomes much less attractive.
It May Take Time for Altseason to Develop, Says Analyst
Not everyone is so pessimistic, though. Crypto analyst Michaël van de Poppe, for example, says patience is needed, as it can take a great deal of time for an altseason to develop.
Extremely boring market environment, which I remember from the previous times that we were here (End of 2019 for instance).
The build-up towards an #Altcoin bull market is usually taking a lot of time, unfortunately.
— Michaël van de Poppe (@CryptoMichNL) June 3, 2025
In another post, he elaborated further on why he is so bullish on altcoins, saying that “there are many altcoins out there that are actually building something valuable”, adding that “it’s just a massive opportunity for every retail investor to be able to get those positions at current valuations.”
He suggests that although altseason may not be here yet, it’s a good time to load up on the projects you believe in before everyone else apes in.
You can find out more about the essential tools you need to navigate markets during uncertain times over here and even learn how to make free crypto here until altseason finally returns.
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Filed under: Bitcoin - @ June 4, 2025 6:12 am