Altcoin season is going to be ‘ugly down under’, says venture capitalist
The altcoin market has seen huge gains since Donald Trump's US presidential victory, but venture capitalists have warned of a near-term collapse as institutional investors step up their profit-pooling activities.
However, not all traders agree.
“Considering the alt season, it's used for now,” Felix Hartman of Hartman Capital Managing said in a Dec. 7 X post.
VCs ‘start cutting harder'
“Traders may remain irrational, but we're at a point where teams and VCs are starting to cut back more aggressively,” Hartmann said.
“Once we get speed tips, we've got to get that lever out and see some kills,” Hartman said. Most of the funding volume of altcoins is now “north” of 100% annualized, recently “movements only” the amount of space designed by eternal traders is declining.
“It's going to be ugly on foot,” Hartman said.
Source: Felix Hartmann
Among the top 100 cryptocurrencies, the three altcoins with the highest gains since November 1 are Hedera (HBAR) with a 99.31% increase, IOTA (IOTA) with a 79.61% increase, and JasmyCoin (JASMY) with a 72.47% increase, according to CoinMarketCap data.
In the year In 2021, after the altcoin market saw a significant rise, many altcoins fell rapidly within a few months.
In the year In November 2021, Solana (SOL) reached $248.36 before falling 64% to $89 in January 2022. XRP (XRP) experienced a steep decline, losing about 51% in the same period.
Contrary opinions from other traders
However, other crypto traders believe that it is the beginning of the altcoin season.
Anonymous crypto trader MilkyBull Crypto wrote in a December 6 X post: “From this month to March, it looks reasonable.
“It will last about 90 days,” he added.
“Altseason has just begun,” Sensei told his 72,900 X followers.
Related: Altcoin funding rates hit 9-month high – Bullish for altseason or red flag?
Traders often look to Bitcoin's dominance as a key indicator of the start of the altcoin era. According to TradingView data, at the time of publication, Bitcoin dominated 55.11%, down 7.88% over the past 30 days.
On December 4, Cointelegraph reported that the 30-day funding for the perpetual futures has increased significantly, with bulls paying between 4% and 6% monthly to secure positions, according to CoinGlass data.
Although such costs may seem manageable during periods of strong volatility, they can quickly erode traders' profits if prices drop or decline.
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