Market sentiment continues to heat up, Coinglass's Crypto Fear and Greed Index has risen to 70, entering the typical 'Greed' range. Bitcoin challenged the $105,000 mark just this past weekend, leading the rise ahead of traditional risk assets like U.S. stocks. Has the 'Banana Zone' - symbolizing the accelerated rise of Bitcoin prices and the crazy bull market phase characterized by banana-shaped graphs - quietly begun?
As Bitcoin's price breaks strongly, bullish sentiment spreads rapidly, and crypto funds are accelerating into spot Bitcoin ETFs. Among them, BlackRock's IBIT stands out, recording net inflows for 20 consecutive trading days, becoming a focal point for global funds. Even more noteworthy is that several Wall Street giants, including Goldman Sachs, have started to increase their positions, making IBIT the center of attention in the current market.
At the same time, BlackRock recently submitted an updated Bitcoin (IBIT) and Ethereum (ETHA) spot ETF filing after talks with the U.S. Securities and Exchange Commission (SEC), injecting more positive expectations into the market. Bloomberg ETF analysts predict that the SEC is highly likely to approve crypto ETFs based on a physical creation/redemption mechanism this year, bringing new catalysts to the crypto market.
Don’t laugh, has the 'Banana Zone' really arrived? Bitcoin may once again enter a crazy upward trend
The so-called 'Banana Zone' is not a joke, but a term used by macro investor Raoul Pal to describe the typical 'banana-shaped' curve when Bitcoin enters an explosive upward phase. Now, is Bitcoin in 2025 repeating this phase of soaring sentiment, with opportunities and risks coexisting in the bull market frenzy?
So what is the 'Banana Zone'?
A parabolic surge in the cryptocurrency market
The 'Banana Zone' is a term proposed by macro investor Raoul Pal to describe the phase of Bitcoin entering a parabolic surge, named for the price curve that resembles a banana. It is usually accompanied by high volatility, market frenzy, and investor FOMO, and has appeared multiple times in Bitcoin's historical trends:
2013: BTC surged from $100 to $1,000
2017: soared from $5,000 to nearly $20,000
2024: jumped from $20,000 to over $69,000, with a peak touching $73,000
This kind of crazy surge is often driven by global liquidity easing and investment enthusiasm.
Five characteristics of the Banana Zone
Emotional frenzy: media reports frequently, retail investors rush in, and the FOMO effect erupts
Altcoins take over: after Bitcoin's initial rise, risk capital flows to smaller coins, sparking a 'Altcoin Season'
Strong macro push: presidential election year, loose policies, etc., become catalysts
Volatile fluctuations: even in a bull market, corrections of over 30% often occur
Indicators to watch: inflows of stablecoins, net inflows into ETFs, MVRV Z-Score, etc.
Is the Banana Zone brewing for Bitcoin in 2025?
By May 2025, Bitcoin rebounded to $104,000 after a correction from its peak. Technical analysis suggests it is currently in a consolidation phase after the 'first stage of the Banana Zone'. Once BTC breaks through $72,000 and stabilizes, the second stage may begin, at which point altcoins are expected to surge in a new wave.
The 'Banana Zone' is not an academic term, but a vivid metaphor.
Some say it’s because the price movement of Bitcoin resembles the curved shape of a banana, while others believe it symbolizes the fragile nature of Bitcoin - sweet when ripe, rotten when overripe, rising quickly and falling hard, and can crash at any moment.
ETH once broke through 2,600, E Guardian makes a stunning turnaround
Ethereum has recently surged strongly, breaking through $2,600 over the weekend, the first time since late February this year.
Recently, on the social platform X, a term originally meant to be sarcastic, 'E Guardian', quietly gained popularity. It not only represents a group of unwavering supporters of Ethereum (ETH) but also completed a stunning transformation from 'laughing stock' to 'faith' in just a few days.
This week's focus data
U.S. CPI inflation data will be released on Tuesday. GDP data for the UK and Eurozone will be released on Thursday, followed by U.S. jobless claims and PPI data.
The market will also pay attention to Federal Reserve Chairman Jerome Powell's speech on Thursday.
That's it for the article! If you feel lost in the crypto space, consider joining me to layout and harvest from the market!
