Real Vision CEO Raoul Pal attributed the fall in value of the first cryptocurrency to being in the “banana zone,” which is the sequence of phases that Bitcoin goes through in its market cycles.

Raoul Pal said that against the backdrop of Bitcoin price swings, a lot of controversy arose in the crypto community about whether Bitcoin, and with it the cryptocurrency market, had reached its peak.

“Many people fear that the market is about to implode or that Bitcoin could fall to $75,000. However, in my opinion, many of these fears are exaggerated,” Pal said.

In his conclusions, he adheres to the concept of the “banana zone,” which is a sequence of phases that Bitcoin goes through: a surge of interest, a correction, and an altcoin season before a new takeoff.

So, at first there is a rapid rise in the value of Bitcoin, like a bomb exploding. This is causing a real stir in the market. But, like any phenomenon, this boom is not eternal.

After a sharp increase, a period of correction follows, when the price stabilizes or even decreases slightly. At this time, uncertainty reigns in the market: investors begin to doubt whether growth will continue or whether it is just a temporary phenomenon.

Then comes the so-called “altcoin season,” when cryptocurrencies that have “gone into the shadows” begin to actively grow and attract more investor attention than Bitcoin.

“During this period, it seems that every cryptocurrency can bring huge profits. However, as a rule, this season does not last long. Even though altcoins dominate during this period, Bitcoin is still an important player in the cryptocurrency market,” says Pal.

Earlier, Felix Hartmann, CEO of the venture capital company Hartmann Capital, said that, in his opinion, the altcoin season is close to ending, and crypto traders may soon suffer significant losses due to the collapse of this segment.