Is the altcoin season coming to an end? Hartmann Capital warns: Institutions are accelerating profit-taking, and the subsequent decline will be severe.

Despite the recent flourishing and substantial rise in the AltCoin market, Felix Hartmann, Managing Partner of Hartmann Capital, recently warned that with the increase in profit-taking activities by institutional investors, the altcoin season may have ended, and the subsequent decline may be quite severe. (Background: After BTC broke 100,000, will there be a big pullback? Analyst: Don't be too pessimistic, altcoin season will be even hotter) (Background: After XRP$XRP became the third largest cryptocurrency, is the altcoin season meme coin worth paying attention to?) Since Trump's election victory, the AltCoin market has risen significantly, but Felix Hartmann, Managing Partner of Hartmann Capital, recently tweeted a warning that with the increase in profit-taking activities by institutional investors, the market may experience a pullback in the near future. Felix Hartmann shared a chart indicating that the altcoin season may have ended, with the annualized funding rates of most AltCoins exceeding 100%. The recent rise momentum is mainly driven by Perpetual Contract Trading, while spot volume is declining. The subsequent decline may be quite severe: Traders may remain irrational, but we are in a phase where teams and venture capitalists are beginning to take more aggressive profit-taking actions. Once the momentum changes, the market will have to deleverage, witnessing some murder-like declines. 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,… pic.twitter.com/BEEzhpLnBe — Felix Hartmann (@FelixOHartmann) December 7, 2024 According to CoinMarketCap data, among the top 100 cryptocurrencies, the top three AltCoins with the highest rise since November 1st are HBAR, with a rise of 99.31%, followed by IOTA with a rise of 79.61%, and JASMY with a rise of 72.47%. Cointelegraph reported that in 2021, after a significant rise in the AltCoin market, there was a substantial decline within a few months, such as SOL reaching a high of 248.36 in November 2021, and then big dumping by 64% to $89 in January 2022, while XRP also experienced a big dump of about 51% during the same period. Is the altcoin season just beginning? Despite Felix Hartmann's warning, other cryptocurrency traders believe that this is just the beginning of the altcoin season. Anonymous cryptocurrency trader Mikybull Crypto recently tweeted an analysis, stating that the altcoin season usually lasts about 90 days, so it would be reasonable for the altcoin season to continue from this month until March next year. #ALTSEASON lasts about 90 days From this month till March seems logical. pic.twitter.com/6X6KTgBzPD — Mikybull Crypto (@MikybullCrypto) December 5, 2024 The market often sees the decrease in BTC's market share in the cryptocurrency market as a key indicator of the beginning of the altcoin season. According to Coinmarketcap data, BTC's market share is currently 54.4%, which is 4.4% lower than 58.6% 30 days ago, while the market share of the remaining cryptocurrencies excluding BTC and Ethereum has increased from 27.6% 30 days ago to the current 32.6%. However, it is worth noting that according to CoinGlass data, the 30-day funding rates of most AltCoins are still between 2% and 6%, which means that bulls need to pay 2% to 6% monthly to maintain leveraged positions. Although these costs seem manageable in a strong upward trend, they could quickly erode traders' profits if prices stagnate or decline. Related Reports Alt season is here》Analysis of 289 Altcoins: 60% surged over 100%, public chains, Metaverse, meme coins lead the rise Is altcoin season coming? Besides BTC.D, these three major indicators help you judge SAND soared 100% in two days, old-school public chains collectively awakened, is the altcoin season signal lit? 〈Is altcoin season ending soon? Hartmann Capital warns: institutions accelerating profit-taking, subsequent declines will be very severe〉This article was first published on BlockTempo, the most influential blockchain news media in the Dynamic Zone.