The cryptocurrency market is abuzz with Bitcoin breaking the $100,000 milestone on May 8, marking its highest level since February 2025. This achievement injected around $300 billion into the total crypto market cap and initiated discussions on Bitcoin and altcoins' future movements.

Concerns about the activation of the "Banana Zone" arise as experienced investor Raoul Pal, founder of Real Vision, suggested that Bitcoin Dominance (BTC.D) peaked on May 8, 2025. Data from TradingView reveals that BTC.D swiftly declined from 65.3% to below 64% in just two days, showing the most significant drop after consistently rising for two months.

Pal highlighted that the recent BTC.D peak is below the levels observed in 2021 and 2017, aligning with historical trends. He speculated that this might indicate the onset of the "Banana Zone," a term he coined for a period of exponential cryptocurrency price surges forming a banana-shaped curve on the chart.

Analyst Mark Harvey disagreed with Pal's view, arguing that Bitcoin Dominance will reclaim 100% due to the emergence of spot Bitcoin ETFs and notable institutional investments that will help Bitcoin reinforce its supremacy.

Simultaneously, CoinMarketCap's Altcoin Season Index data reached a two-month high of 41, transitioning out of the "Bitcoin season" range into a neutral zone, signaling a revival of positive market sentiment.

Analysts observed that the altcoin season has commenced, with the Altcoin Season Index breaking a months-long resistance, and Tether Dominance (USDT.D) declining, creating a favorable environment for altcoins to prosper.

The contrasting opinions reflect the intricacies and uncertainty of the crypto market regarding whether Bitcoin will relinquish its dominance to empower altcoins or maintain its leading position. The market's response in the impending weeks amidst macroeconomic conditions and evolving investor outlook will likely provide clarity on the situation.