Originally published on: December 08, 2024
The altcoin market has been on a roll since the election of Donald Trump as U.S. President, but one venture capitalist is cautioning traders about a potential downturn as institutional investors start taking profits.
Despite this warning, not all experts are in agreement. Hartmann Capital’s managing partner, Felix Hartmann, recently stated that he believes the altcoin season has reached its peak for now. He pointed out that teams and venture capitalists are starting to cash out more aggressively, and once the momentum shifts, we could see significant price drops.
Hartmann also noted that many altcoins’ funding rates are now over 100% annualized, driven mainly by perpetual traders and declining spot volumes. He warned that the upcoming correction could be brutal for the market.
The top three altcoins with the highest gains since November 1st are Hedera (HBAR) with a 99.31% increase, Iota (IOTA) with 79.61%, and JasmyCoin (JASMY) with 72.47%, according to CoinMarketCap.
While some traders are pessimistic about the future of altcoins, others like Mikybull Crypto believe that the season is just beginning and could last until March. Sensei echoed this sentiment, stating that altseason is only getting started.
Bitcoin dominance, a key indicator for altcoin season, currently stands at 55.11%, down 7.88% over the past 30 days. Traders are closely monitoring funding rates for perpetual futures, which have risen significantly, posing potential risks to leveraged positions if prices stagnate or decline.
Stay informed about the latest trends in the crypto market by subscribing to our Crypto Biz newsletter, delivering valuable insights and opportunities every Thursday. Join us to navigate the market with confidence and make informed decisions. Subscribe now to stay ahead of the curve.
