Macroeconomic expert Raoul Pal predicts that Bitcoin could soar to between $250,000 and $450,000 during a liquidity-driven supercycle, a phase he terms the 'Banana Zone.'

He describes the current market phase as the Mania Phase within the Banana Zone, suggesting that synchronized global liquidity expansion and central bank easing are driving this strong upward movement in prices.

Pal attributes Bitcoin's price movements to global liquidity, noting a significant correlation of 90% with total global liquidity and 95% with the Nasdaq.

He critiques current bearish sentiments as misguided, asserting that the market is transitioning towards a new liquidity expansion phase.

Pal emphasizes that inflation and currency debasement are eroding wealth at rates of at least 11% annually, making investments like Bitcoin essential for wealth preservation.

He anticipates that this liquidity cycle could extend into the first half of 2026, potentially influenced by political changes such as a possible Trump re-election.

As housing prices remain high, millennials are increasingly turning to cryptocurrencies for investment, seeking better returns with fewer barriers compared to traditional avenues.

The cryptocurrency market is witnessing a resurgence, with a total valuation exceeding $3 trillion and Bitcoin nearing $100,000, which is spurring interest in meme coins and altcoins.

Pal delivered a keynote speech in Dubai, emphasizing that the current market is entering a phase of explosive growth driven by increased global liquidity and low investor sentiment.

Bitcoin has averaged a staggering annual return of 130% since 2012, with a recent price surge reaching $94,600.66, solidifying its position as the best-performing asset in history.

According to Pal, Bitcoin could be fairly priced at $450,000 if the ISM Manufacturing Index reaches 57, contrasting with lower predictions from other analysts.

He emphasizes that Bitcoin's price movements are influenced by financial conditions with a three-month lag, linking them to periodic global debt cycles.