Today, the crypto market experienced a significant boost following the release of the Consumer Price Index (CPI) data, indicating a decrease in the inflation rate. This positive news triggered a surge in the price of Bitcoin, reaching a high of $66,458 and currently trading at $66,184.23, maintaining bullish sentiments. The impact was also felt across altcoins, with Ethereum rising to $3,019 after a recent decline.
The surge in Bitcoin’s price has contributed to the overall market recovery, evident in the crypto market heat map displaying all green indicators. The global market cap has surged to $2.38 trillion, marking a 5.3% increase from the previous day. Notably, trading volume is on the brink of reaching the $100 billion milestone, with a 40% increase, the highest for the month.
In the meme market, steady growth was already observed, but today saw a significant increase, with market cap surging by 6.34% and trading volume following suit. The Solana network experienced a 24% increase in trading volume, although the market cap witnessed a slight decline. However, there remains a strong demand for Solana meme coins.
While today may signal the start of a bullish trend, it’s premature to declare the beginning of a bull run. Nevertheless, it marks the first all-green day for cryptocurrencies, suggesting potential for a bull rally in the coming days.
RealVision founder and CEO, Raoul Pal, has hinted at an upcoming “banana zone,” a phase in the bull run, which he predicts will commence by mid-June. According to Pal, this super bullish period will lead to a significant increase in cryptocurrency prices, with the market cap potentially quadrupling by the end of the bull cycle in 2025.
Pal suggests that following Bitcoin halving, there’s typically a consolidation period, followed by a free rise, signaling the transition from macro spring to macro summer, which precedes the banana zone.
While historical evidence supports Pal’s prediction, predicting the exact movements of the crypto market remains challenging. While the summer rally hasn’t been consistent every year, it was observed in 2013 and 2017. If 2024 follows a similar pattern, investors may witness a bull rally in the near future.
Source: coingape.com
