Bitcoin Surges 9.66% to $103,322, Altcoins Await Rally

Bitcoin's price has surged past $100,000, sparking a renewed debate about whether altcoins are poised for a significant rally or if Bitcoin's dominance will continue to rise. Veteran macro investor Raoul Pal has declared the start of the “Banana Zone,” a phase characterized by parabolic growth for altcoins. However, not everyone shares this view, with some arguing that institutional support could keep Bitcoin in the lead.

At the beginning of May, Bitcoin was trading around $94,197 and remained within the $94K–$97K range until May 7. In the last 24 hours, BTC surged 3.5% to $103,322, breaking the critical $100K mark. Overall, Bitcoin has gained 9.66% this month and 6.9% in the past week. Meanwhile, Bitcoin dominance has dropped from 65.36% on May 7 to 63.69%, a 2.5% decline—the first after two months of consistent growth. Pal believes this downturn could mark the end of Bitcoin’s dominance and the start of the altcoin rally, noting that BTC-D didn’t reach 2021 or 2017 highs, supporting his call.

The “Banana Zone,” a term coined by Pal, describes a sharp upward curve in altcoin prices that mimics the shape of a banana. It occurs when investors rotate profits from Bitcoin into altcoins, triggering explosive gains across the board. However, crypto analyst Mark Harvey disagrees, believing that Bitcoin dominance could grow stronger due to rising ETF inflows and institutional adoption. According to him, the current dip is only temporary.

The CMC Altcoin Season Index currently stands at 41, the highest since February but still far below the altcoin season threshold of 75. This means that while there is growing interest, a full altcoin season has not yet begun. Bitcoin’s $100K breakout is historic, and whether this triggers the “Banana Zone” or strengthens BTC dominance further remains to be seen. All eyes are now on altcoins as the market awaits the next significant move.