The post Altcoin Gains Stall, VC Signals a Pause in Momentum appeared on BitcoinEthereumNews.com.

Venture capitalist Felix Hartmann, managing partner at Hartmann Capital, has issued a cautionary note for altcoin enthusiasts. In a December 7 post on X, Hartmann remarked, “Considering alt season tapped out for now,” signaling potential challenges for the ongoing rally. The cryptocurrency market is currently experiencing contrasting dynamics, with the altcoin sector showing signs of both exuberance and caution. Several altcoins have posted significant gains following a robust rally fueled by optimism surrounding Donald Trump’s U.S. presidential election victory. Notable performers include Hedera (HBAR), IOTA, and JasmyCoin (JASMY), which surged by 99.31%, 79.61%, and 72.47% respectively since November 1, according to CoinMarketCap. Hartmann pointed to soaring funding rates in the altcoin market, which has surpassed 100% annually. Such elevated rates suggest a speculative frenzy driven by leveraged traders rather than organic spot buying. “Traders may stay irrational, but we are at the point where teams and VCs start clipping more aggressively,” Hartmann noted, warning that intensified profit-taking could lead to sharp corrections. Felix Hartmann shares his perspective on the future of altcoin markets. Source: X Historical patterns lend weight to this caution. The altcoin market has previously witnessed rapid surges followed by dramatic sell-offs, often described as “murder wicks,” where prices plummet within hours. This phenomenon aligns with the broader market dynamics, where speculative euphoria often precedes sharp pullbacks. Divergent Market Sentiments Following Bitcoin’s Influence Despite cautious warnings from experts, segments of the trading community remain optimistic. Pseudonymous trader MilkyBull Crypto suggested the altcoin rally might just be beginning and could last until March. Another trader, Sensei, similarly expressed bullish sentiment, claiming, “Altseason has just started.” Bitcoin dominance, a metric reflecting the market’s preference for Bitcoin over altcoins, has dropped 7.88% in the past month to 55.11%, according to TradingView. This decline suggests increasing investor interest in altcoins, albeit with…

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Filed under: News - @ December 9, 2024 1:23 pm