Famed macro investor Raoul Pal has made bold statements suggesting that the peak of Bitcoin (BTC) dominance may have been reached, potentially clearing the way for an imminent altcoin rally. Pal highlighted that the DeMark indicators signal peaks for BTC dominance across daily, weekly, and monthly charts, aligning with past cycles where decreases in BTC dominance led to robust surges in altcoin valuations.
Supporting data shows that Bitcoin recently surpassed the $100,000 mark and that Bitcoin dominance (BTC.D) dipped sharply from 65.3% to below 64% over two days, marking the steepest decline in months. Meanwhile, CoinMarketCap’s Altcoin Season Index has risen to 41, its highest point since February, and Blockchain Center’s index reportedly broke through multi-month resistance. This lends credence to Pal’s notion of the so-called “Banana Zone,” a period characterized by explosive growth in altcoins.
However, the outlook is not unanimous; analyst Mark Harvey argues Bitcoin dominance could rebound due to heightened ETF inflows and institutional interest, casting uncertainty on the timing and certainty of an altcoin market surge. Regardless, market sentiment appears to tilt towards optimism as indicators show a break from “Bitcoin season” and a shift to a more neutral or altcoin-favorable environment.