Crypto approaching ‘banana zone’ when risky assets completely rip, according to Raoul Pal – here’s the timeline

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Former Goldman Sachs executive Raoul Pal believes a period of sustained upside is coming for Bitcoin (BTC) and the rest of the crypto market.

In a new interview with crypto trader Scott Melker, the macro guru points out that risky assets like Bitcoin and crypto have historically tended to see rallies during the fourth quarter of a presidential election year.

“Look, the backend quarter of an election year is a real banana zone for all assets. That’s always the case. So you know there’s a very, very good chance that things will be completely broken come fall.

I mean, how long before ETH, Bitcoin [and] SOL break their recent highs? It may take two weeks. It could be two months. It doesn’t really matter, but then it speeds up.”

Earlier this year, Pal said that during elections, politicians tend to “hand out sweets” in the form of stimulus packages, leading to higher inflation and in turn higher prices for digital assets.

At the time of writing, Bitcoin is worth $64,500.

Taking a closer look at Solana (SOL), Pal shares a chart showing that the altcoin appears to be respecting its diagonal support while trading in a triangular structure.

“If you want a sassy addition to your SOL position, this would probably be a good entry zone… let’s see! The bananas are slow to ripen…but should be beautiful in the fall.”

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Source: Raoul Pal/X

A triangle structure is often seen as a continuation pattern that tends to resolve in the direction of the prevailing trend. Based on Pal’s chart, he seems to suggest that SOL remains in an uptrend.

See also  Institutions and 'smart money' to influence price action during upcoming BTC halving, says Glassnode – here's why

At the time of writing, Solana is worth $134.72.

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Generated image: Midjourney



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