Originally published on: December 08, 2024
The altcoin market has been on the rise, but a venture capitalist is cautioning traders about a possible downturn as institutional investors ramp up profit-taking activities. Felix Hartmann, managing partner at Hartmann Capital, believes that alt season may have reached its peak, with teams and VCs preparing to sell off aggressively.
According to Hartmann, altcoins’ funding rates are soaring, driven mainly by perpetual traders amid dwindling spot volumes. He predicts that once momentum shifts, we can expect a significant drop in prices, labeling it as an “ugly leg down.”
Top altcoins like Hedera (HBAR), Iota (IOTA), and JasmyCoin (JASMY) have seen impressive gains in recent months. However, past trends have shown that such gains can quickly reverse, as seen with Solana (SOL) and XRP (XRP) in early 2022.
Despite Hartmann’s warning, some traders like Mikybull Crypto and Sensei remain optimistic about the ongoing altcoin season. They believe that the season has just begun and could last until March, based on historical patterns.
Monitoring Bitcoin dominance, which has dropped nearly 8% in the last month, is crucial for predicting altcoin season. Rising funding rates for perpetual futures could also impact traders’ margins, especially if prices stabilize or decrease.
Stay informed about the latest trends in the crypto market by subscribing to our Crypto Biz newsletter. Get weekly insights on blockchain, startups, and regulatory shifts to make informed decisions in this volatile industry. Don’t miss out on valuable opportunities – subscribe today!