After weeks of decreasing prices and diminishing returns, the cryptocurrency market has finally returned from neutral market circumstances. The year 2024 began with a super greed zone that sparked a bull market that lasted for weeks before it fell last month. The market once more entered the greed zone today as a result of the recovery in the values of several cryptocurrencies. Still, the decreasing conditions persisted up until a day ago.
So, is this the beginning of a bull market boom? Let’s talk about that in this blog post.
Conditions of the Crypto Market Overall
The Consumer Price Index (CPI) data, which showed the reduction in the inflation rate, was released today, which gave the cryptocurrency market a lift. The price of Bitcoin began to soar shortly after the release of the CPI report, reaching a peak of $66,458. Currently, bitcoin is trading at $66,184.23, continuing to rise in value. The immediate effect is also seen on other cryptocurrencies, such as Ethereum, which increased to $3,019 following a decrease yesterday.
The crypto market heat map is entirely green, indicating that the spike in Bitcoin prices has helped the market recover. Additionally, the value of the world market has increased to $2.38 trillion, up 5.3% from the previous day. More significantly, the trade volume is poised to reach its highest position for the month—$100 billion—with a 40% increase.
Even with the weak market conditions, the meme market was growing steadily. Still, its market cap and trade volume have increased by 6.34%. Regarding the Solana network, the market capitalization has slightly decreased despite a 24% increase in trading volume. However, the Solana meme coins are still in demand.
Is This The Bull Run’s Beginning?
After weeks, today is the first day of a greedy zone, but it would be premature to declare it the start of a bull zone. But today is the first day that all cryptocurrencies are up, and if the pattern holds, the next few days might see the start of a bull market for cryptocurrencies.
More significantly, Raoul Pal, the CEO and founder of RealVision, has alluded to the impending banana zone, a bull run stage. He thinks that the highly bullish banana zone will start by the middle of June and will happen in a matter of weeks. Additionally, the banana zone will cause a permanent spike in cryptocurrency values. He asserted that by 2025, when the current bull cycle ends, the market cap will have quadrupled.
According to Raoul Pal, a 20% market decline occurs during a consolidation phase that often follows a Bitcoin halving. However, a free climb follows, marking the shift in the cryptocurrency market from a macro spring to a macro summer. The banana zone is introduced at this phase of transition.
Last Words
Past data support Raoul’s statement, although it is challenging to forecast the precise movement of the cryptocurrency market. Though it hasn’t happened yearly, the cryptocurrency market followed this banana zone between 2013 and 2017. Investors might witness a bull rally if 2024 looks like the last two.
