Although the altcoin market has seen a significant rise since Donald Trump's victory as US president, one venture capitalist believes that institutional investors may be weeded out in the short term as they increase their profit-taking activities. Warning that there is sex.
However, not all traders agree.
“We are considering canceling the alternative season for the time being,” Felix Hartman, managing partner at Hartman Capital, told X magazine on Dec. 7. post.
VCs will “start clipping more aggressively”
“Traders may remain irrational, but we're at a point where teams and VCs are starting to clip more aggressively,” Hartman said.
“When the momentum shifts, you have to pull the lever and see the murder core,” Hartman said. He explained that funding rates for most altcoins are currently “above” 100% annualized, and that the recent movement is “purely” driven by perpetual traders as spot trading volumes decline.
“It's going to be ugly to put the foot down,” Hartman said.
sauce: felix hartman
According to CoinMarketCap, among the top 100 cryptocurrencies, the three altcoins that have risen the most since November 1st are Hedera (HBAR), up 99.31%, IOTA (IOTA), up 79.61%, and Jasmy Coin (JASMY). It was an increase of 72.47%. data.
In 2021, the altcoin market saw a huge surge, followed by several altcoins plummeting within a few months.
In November 2021, Solana (SOL) reached $248.36, but by January 2022 it had plummeted 64% to $89. XRP (XRP) also faced a steep decline, losing about 51% over the same period.
Contrasting opinions from other traders
However, other crypto traders believe this is just the beginning of the altcoin season.
Pseudonymous crypto trader MilkyBull Crypto said this in the December 6th X newspaper. post “I think it's reasonable from this month until March.''
“The duration is about 90 days,” he added.
“The alt season has just begun,” Mr. said He has 72,900 X followers.
Related: Altcoin funding rate hits 9-month high — is altseason bullish or a red flag?
Traders often monitor Bitcoin's dominance as a key indicator of the start of altcoin season. According to TradingView, Bitcoin has an advantage of 55.11% at the time of publishing this article and has fallen 7.88% in the past 30 days. data.
On December 4th, Cointelegraph reported that 30-day funding rates for perpetual futures have increased significantly, with bulls increasing from 4% to 6% per month to maintain leveraged positions, according to data from Coinglass. It was reported that they were paying.
While such costs may seem manageable in a strong uptrend, they can quickly erode a trader's margins when prices stagnate or decline.
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