Markets
Raoul Pal predicts crypto boom in Q4 of election year and 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 conversation with crypto trader Scott Melker transmitted on YouTube last week, stated that risk assets like Bitcoin and other cryptocurrencies typically experience rallies during the fourth quarter of an election year.
“The last quarter of an election year is a real banana zone for all assets. It always is. So you know there’s a very, very, very high probability that in the fall things will be totally torn up,” Pal expressed.
Earlier this year, Pal suggested that politicians often “hand out candy” in the form of stimulus packages during elections. This leads to higher inflation and, as a result, higher prices for digital assets.
He also highlighted that Solana SOL/USD appears to be respecting its diagonal support while trading in a triangular structure, indicating an uptrend.
“If you wanted a cheeky top-up from your SOL position, this would probably be a good entry zone… let’s see! The bananas are slowly ripening… but they should be magnificent in the fall,” Pal added.
Why does this matter: 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 recovery is in line with historical trends in which cryptocurrencies made 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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