{"content":"🍌 Bitcoin Enters the Banana Zone — Is This the Bull Run of a Lifetime? Raoul Pal's lively, two-hour “Drinks With Raoul” webcast was set against Bitcoin's meteoric rise to $111,800 on May 22. The former hedge-fund macro strategist and Real Vision co-founder says the surge is young. “The Banana Zone began. Bitcoin reached record highs. The next topic is alternatives. Make sure you have enough Bitcoin.” The “Banana Zone” occurs when liquidity pushes investors off the risk curve. He said that bond market policy measures are causing such liquidity, not inflation. Pal said collateral shortages, not rising prices, caused the US 10-year yield to rise above 4.4 percent. Usually not a good sign... Inflation is always dropping. The issue is liquidity. Bond market liquidity is low, therefore when rates get too high, the government always prints more money. He said such actions “remove the left-tail risk” and boost limited assets. “Exactly what happened in 2017. Bitcoin, gold, and stocks soared to the moon.” Pal spent several minutes comparing dollar charts: “Trump’s first [term] saw the dollar fall hard. Guess what? The replay is now quicker. A weak dollar powers the globe. Bitcoin gained 119%, 175%, and 592% in 12 months following large dollar declines. The denominator effect.” As Bitcoin celebrated its milestone, Pal said Ethereum and high-beta Layer-1s would gain when the ISM manufacturing index—currently below 50—rises: “The financial-conditions index I track is screaming higher and leads ISM by nine months. Alt-season begins when ISM rises beyond 50. Bitcoin supremacy has peaked (ETH-BTC ratio is basing). With Solana and Sui charts “forming classic cup-and-handles,” he joked about Dogecoin: “The funniest outcome is Doge eventually outperforming Bitcoin from inception and becoming the hardest currency in the world. That will anger many, but the chart suggests it's possible.” Pal's global-M2 model warned, "Liquidity says we should be over $140,000 by July," despite the optimism. #BTCBreaksATH110K #BTC $BTC ","images":["https://d2kdcqywr8ua22.cloudfront.net/uploadfile/article/blog/2025052025/05/23/503d9a9fdb2d461eb38c952246c15f35.png"],"tags":[],"tradingPairs":["SOL/USDT"],"quotearticleid":0}