The post Bitcoin Hits ‘Banana Zone’—Why This Bull Run Is Different appeared on BitcoinEthereumNews.com.

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Bitcoin’s explosive push to a new intraday peak above $111,800 on May 22 set the backdrop for Raoul Pal’s spirited, two-hour “Drinks With Raoul” livestream. The former hedge-fund macro strategist and Real Vision co-founder insists the rally is still in its early innings. “The Banana Zone has started. Yes, Bitcoin hit an all-time high. Next up, it’s alts… Make sure you’re stacked up on your Bitcoin.” He defines the “Banana Zone” as the phase when liquidity forces investors out the risk curve. That liquidity, he argued, is coming not from inflation but from looming policy interventions in the bond market. Why This Bitcoin Cycle Is Different With the US 10-year yield back above 4.4 %, Pal said the move reflects collateral scarcity, not overheating prices:“Bond yields are going up. Normally that’s not a good thing… But inflation is falling all the time. The story is liquidity. There’s a lack of liquidity in the bond market, and when yields get too high the government’s reaction function is always and in every case to print more money.” He predicted the Federal Reserve will either relax the supplementary leverage ratio (SLR) to let primary dealers absorb Treasuries or “dress up” a form of yield-curve control: “By July they’ll be using the SLR to allow banks to hold more bonds. That is code for, ‘Hey, stick bonds on your balance sheet, give some leverage out into the world, and—hey presto—new buyers of bonds.’ If that’s not enough, they’ll slap a four-letter acronym on yield-curve control and pretend it’s something new.” Such measures, he said, “remove the left-tail risk” and turbo-charge scarce assets. “It’s exactly what happened in 2017. Stocks, gold, and especially Bitcoin went to the moon.” Pal devoted several minutes…

---

Filed under: News - @ May 22, 2025 8:29 pm