Originally published on: December 08, 2024
The altcoin market has been on a tear since Donald Trump’s presidency, but a venture capitalist is sounding the alarm on a potential downturn as institutional investors cash in their profits.
Felix Hartmann, managing partner at Hartmann Capital, predicts rough waters ahead for altcoins. According to him, the recent surge in altcoin prices is driven by traders and could soon see a reversal, leading to a significant drop in prices.
Hartmann warns that the upcoming correction will be brutal, with altcoins facing a considerable decline. He points to skyrocketing funding rates and declining spot volumes as indicators of an imminent sell-off.
Despite the gloomy outlook, some traders remain optimistic about the altcoin season. Cryptocurrency trader Mikybull Crypto believes that the season has just begun and expects it to last until March. Meanwhile, Sensei, with a large following, is bullish on altcoins, indicating that this could be the start of something big.
The top-performing altcoins in recent months include Hedera (HBAR), Iota (IOTA), and JasmyCoin (JASMY), all seeing significant gains since November 2021. However, past performance is not always an indicator of future success, as seen with Solana (SOL) and XRP (XRP), which experienced sharp declines after peaking.
As traders keep a close eye on Bitcoin dominance and funding rates, the altcoin market remains a volatile and unpredictable landscape. Whether the current altcoin season will continue its upward trajectory or face a major correction remains to be seen.
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