Raoul Pal Says Altcoin Season Is Coming—Bitcoin Dominance Drops

The crypto market is heating up fast and Bitcoin just stole the show. After weeks of buildup, BTC has officially smashed past the $100,000 mark, sparking renewed buzz about a major altcoin rally.

But is this the start of the so-called “Banana Zone,” or just another Bitcoin-led run?

Bitcoin Breaks Through a Major Milestone

At the beginning of May, Bitcoin was trading around $94,197. It stayed in a tight range between $94K and $97K until May 7. Then came a sharp move – a 3.5% jump in the past 24 hours pushed BTC to $103,322, breaking the much-anticipated $100K barrier.

So far this month, Bitcoin is up 9.66%, with 6.9% of that gain coming in just the last week. It’s a breakout that’s reignited excitement across the market and shifted attention toward what might come next.

Bitcoin Dominance Slips for the First Time in Months

While Bitcoin’s price is rising, its dominance in the market is beginning to slip. After two months of steady growth, Bitcoin dominance (BTC-D) dropped from 65.36% on May 7 to 63.69% today. That’s a 2.5% decline – and it could be an early signal of a trend reversal.

Macro investor Raoul Pal sees this as a turning point. He believes BTC-D has peaked, and that the market is now entering what he calls the “Banana Zone.”

What Is the “Banana Zone”?

Coined by Pal, the “Banana Zone” refers to a phase of parabolic growth in altcoins. It usually kicks off when investors begin rotating profits out of Bitcoin and into smaller altcoins, sparking massive price surges.

Pal notes that Bitcoin dominance hasn’t reached the highs seen in 2021 or 2017. That, in his view, supports the idea that the real altcoin rally is just getting started.

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But Not Everyone Agrees

Crypto analyst Mark Harvey sees things differently. He believes Bitcoin dominance could continue to grow, fueled by rising institutional adoption and inflows into spot Bitcoin ETFs.

In his view, the current drop in BTC-D is likely a short-term dip, not the beginning of a full-blown altcoin season.

Altcoin Season Indicator Shows We’re Getting Closer

The Altcoin Season Index by CoinMarketCap currently reads 41 – the highest level since February. However, it still falls short of the key threshold of 75, which officially signals the start of altcoin season.

So while we’re not there yet, the pieces may be falling into place.

Bitcoin’s $100K breakout is historic. Whether this triggers the “Banana Zone” or strengthens BTC dominance further remains to be seen. All eyes are now on altcoins.

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