Markets
Raoul Pal predicts crypto boom in fourth quarter of election year, calls it ‘banana zone’
Former Goldman Sachs executive Raoul Pal predicted a significant increase Bitcoin BTC/USD and the overall crypto market in Q4 of the presidential election year.
What happened: Pal, in a conversation with crypto trader Scott Melker streamed on YouTube last week, said risk assets like Bitcoin and other cryptocurrencies typically see rallies during the fourth quarter of an election year.
“The last quarter of an election year is a real banana zone for all working people. It’s always like that. So you know there’s a very, very, very high probability that by fall, things will be completely torn apart,” Pal said.
Earlier this year, Pal suggested that politicians usually “hand out candy” in the form of stimulus packages during elections. This leads to higher inflation and, consequently, higher prices of digital assets.
He also emphasized that Solana SOL/USD appears to be respecting its diagonal support while trading within a triangular structure, indicating an uptrend.
“If you wanted to boldly reload your SOL position, this would probably be a good entry zone…let’s see!” The bananas ripen slowly…but should be beautiful in the fall,” Pal added.
Why is this important: Pal’s prediction comes at a time when the crypto market is experiencing significant volatility. His comments about the “banana zone” suggest a period of high returns for crypto investors.
His prediction of a fourth-quarter rally aligns with historical trends where cryptocurrencies saw significant gains during the final quarter of the year.
However, it is important for investors to exercise caution and conduct thorough research before making investment decisions.
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