Robert Kiyosaki, known for his pro-crypto stance, believes Bitcoin is about to take off and enter what some call the “Banana Zone.”
The “Rich Dad Poor Dad” author explained his optimism about the asset’s future in an X post on Wednesday. His enthusiasm stems from former Goldman Sachs hedge fund manager Raoul Pal’s forecast, pointing to the “Banana Zone” as a phase of exuberant and significant price growth for the cryptocurrency. Pal is credited with creating the term to describe a notable upward price movement period.
Is the Banana Zone real?
Raoul Pal is creating a lot of excitement talking about Bitcoin hitting “the Banana Zone.”
Q: Does he know what he is talking about? Q: What is the Banana Zone? A: Yes, I believe Raoul PAL knows what he is talking about. A: “The Banana Zone” is…
— Robert Kiyosaki (@theRealKiyosaki) June 25, 2024
Robert Kiyosaki Backs Raoul Pal’s Bitcoin ‘Banana Zone’ Prediction
Kiyosaki’s comments come after Scott Melker recently interviewed Pal, who is known for his big-picture analysis. Pal said that historically, investments like Bitcoin and other cryptocurrencies tend to do well in the last quarter of a US presidential election year.
“The backend quarter of an election year is a true banana zone for all assets,” Pal said. “It always is. So you know that you’ve got a very, very, very high probability that by autumn things are utterly ripping. I mean, how long before ETH, Bitcoin [and] SOL break their recent highs?”
Further, Kiyosaki said he endorses Pal’s view given his solid Goldman Sachs background. The author also revealed that Pal convinced him to invest in Bitcoin. He then bought 30 Bitcoin when the asset was worth $6,000.
“Today those same Bitcoin are priced at around $60,000…and I have continued to buy Bitcoin…more every month,” Kiyosaki said. “Thanks to Raoul’s You Tube lessons….I understand why Bitcoin is entering ‘The Banana Zone.’”
Mt. Gox Payout and Fed Jitters
While Kiyosaki is predicting a surge into the “Banana Zone,” the cryptocurrency has recently been declining.
Bitcoin dropped below $60,000 this week, marking one of the worst weekly declines for the crypto market this year. This slump coincides with the announcement of a payout from the bankrupt Mt. Gox exchange. The Japanese exchange is expected to distribute over $9b in Bitcoin and other assets by the end of October.
Investors in Bitcoin spot ETFs are also showing negative sentiment. These funds have seen outflows for seven straight days, totaling $174m on June 24. Some believe this stems from concerns about potential interest rate hikes by the Federal Reserve.