We Were Promised A "Banana Zone"

President Trump's Proposed Tariffs Put Bitcoin Bull Market On Hold

Feb 02, 2025

Down we go. | Image credit: Maxim Hopman

If you’ve been on X for the last few months, you’ll have seen plenty of tweets like the following calling for an incoming “banana zone.”

But, thus far, this banana zone — when bitcoin’s price goes parabolic (straight up in an atypical fashion) — hasn’t transpired.

This doesn’t mean we won’t enter such a zone in the coming months (though, even if we do, I’m not convinced a this potential upcoming banana zone will look exactly like previous ones), it simply means something like this may be on hold due to President Trump’s proposed tariffs on Mexico, Canada and China, which could be highly inflationary for consumer goods in the US.

Arthur Hayes, CIO at Maelstrom and well-known crypto trader, recently shared that he thinks we’ll see bitcoin’s price drop below $75k before the uptrend continues.

Do I think he’s right in his prediction? Not necessarily. But I think dropping to the $75k region is a definite possibility if President Trump stands his ground on these tariffs or takes other actions that upset the market.

I share this because, as I mentioned in my piece “Don’t Buy The Bitcoin Dip” a few weeks back, dollar-cost averaging (DCA) is the best way to invest in bitcoin, especially at these elevated price levels.

While bitcoin is a bull market, you’ll hear plenty of noise about how its price will only continue to rise. Please do your best to ignore that noise and not make huge bitcoin purchases (especially ones that will put you in a precarious financial situation) while many are hyping up the asset.

(The above isn’t financial advice, nor is anything I write in this newsletter. Your financial decisions are yours and yours alone.)

The Bitcoin And Cypherpunk Spirit In Africa

Inspired by what I saw in Africa last week, I wrote a piece about how African Bitcoiners are carrying on the Bitcoin and cypherpunk spirit for Bitcoin Magazine: