Crypto venture capitalist said the market could be approaching the local bottom, citing the market's expanded negative funding rate and widespread bearish sentiment.
“I might be early, but we feel like we're near the bottom,” said Felix Hartman, founder of Hartman's capital, on February 8th. post.
Funding rate and sentiment are two major indicators
Hartmann says that crypto funding rates (payments that help keep you traded by adjusting futures and spot market prices) are “negative for a while” meaning there are more sellers than buyers.
The sustained negative funding rate can indicate bearish sentiment among traders, implying a market bottom and potential for short-term rebounds.
Hartman also said that “quality alt” went back to the long-term trend line and “sweeps away” the majority of profits made in the fourth quarter of 2024.
In December 2024, ether (ETH) was traded for over $4,000. This could be in the middle of retesting the all-time high of November 2021 $4,878. However, the assets later reverted to $2,639 at the time of publication.
Ether trades for $2,639 at the time of publication. sauce: coinmarketcap
Solana (Sol) reached a new all-time high of $295 on January 19th, but has since returned to $201.15 at publication.
Meanwhile, MemeCoin's overall market capitalization had fallen by 32.38% by the end of December 2024.
Civil analyst Matthew Hyland recently said the market “will not see most ALTs December highs for a minimum of two months, if not long.”
VC says market chops could be at the “tail end”
Hartman said the overall code sentiment is “absolutely destroyed.” Code fear and greed indexMeasuring overall crypto market sentiment reads a “fear” score of 46, a 14 percentage point reduction from last week's “greed” score.
Reflecting a similar view, cipher analyst Mike Alfred said on January 21. post The “bad” sentiment in the crypto market is that it is “the very set up of a gathering across the previous major sector.”
Matt Hougan, chief investment officer at Bitise, recently said, “Retail sentiment has been the worst for years.”
Related: The crypto market is “very confused” and loses all logic – Traders
However, Hougan said professional investors are “very bullish” and leave behind a “mass cutting” between the two groups of investors.
Hartman said the crypto market may continue to “chop” but this could be a “tail end.”
Between March and October 2024, Token Unlocks released assets worth $35 billion, significantly increasing market supply.
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