Venture Capitalist Declares End of Altcoin Season

Felix Hartmann, managing partner of investment firm Hartmann Capital, is convinced that the altcoin season has “already run its course.” He warned traders of a sharp correction.

Considering alt season tapped out for now.

Most alts now have funding rates north of 100% annualized. Last moves purely perp driven, spot volumes declining.

Leg down will be ugly.

Doing some light 2x long BTC, 1x short tapped out dino coins

Traders may stay irrational,… https://t.co/s066BWjtsr pic.twitter.com/BEEzhpLnBe

— Felix Hartmann (@FelixOHartmann) December 7, 2024

“Most alts now have funding rates north of 100% annualized. Last moves purely driven by [perpetual futures market], but spot volumes are declining. The pullback will be terrible,” he wrote.

According to him, traders may remain “irrational,” yet the market is at a stage where teams and venture capitalists “begin to more aggressively cut investment volumes.”

“Once the momentum runs out, we’ll have to give up leverage and see some killer wicks,” the expert warned.

Hartmann is likely referring to the situation in 2021, when after a sharp rise in altcoins, some coins plummeted rapidly over several months.

However, other members of the crypto community believe that the altcoin season is just beginning. A trader under the pseudonym Mikybull predicted the cycle would last from December 2024 to March 2025 — about 90 days.

#ALTSEASON lasts about 90 days

From this month till March seems logical. pic.twitter.com/6X6KTgBzPD

— Mikybull ?Crypto (@MikybullCrypto) December 5, 2024

One of the main indicators of the start of an altcoin season is the decline in Bitcoin dominance. At the time of writing, the figure stands at 55.14%, having decreased by 7.8% over the past month.

Earlier, experts at Bitwise noted the stability of altcoins amid Bitcoin’s sharp volatility.