The altcoin market has surged following Donald Trump’s U.S. presidential victory, but a venture capitalist has warned that institutional profit-taking could spark a near-term downturn. “Considering alt season tapped out for now,” Hartmann Capital managing partner Felix Hartmann stated in a Dec. 7 post on X. VCs May Start Aggressive Selling Hartmann noted that traders’ optimism might soon face reality. “Traders may stay irrational, but we are at the point where teams and VCs start clipping more aggressively,” he explained. He warned of significant corrections, saying, “Once momentum tips, we’ll have to get that lever out, and see some murder wicks.” Hartmann added that altcoins’ funding rates are now “north” of 100% annualized, with recent price movements driven largely by perpetual traders rather than spot market activity. “Leg down will be ugly,” he concluded. Top Gainers and Historical Volatility Among the top 100 cryptocurrencies, Hedera (HBAR) led with a 99.31% gain since Nov. 1, followed by IOTA (79.61%) and JasmyCoin (72.47%), according to CoinMarketCap data. However, historical patterns suggest caution. In late 2021, Solana (SOL) plummeted 64% within two months after a record high, while XRP shed 51% in the same period. Diverging Trader Sentiments Despite Hartmann’s warnings, some traders remain bullish. Crypto trader MilkyBull Crypto suggested on Dec. 6 that altcoin season could extend into March, noting, “Lasts about 90 days.” Similarly, trader Sensei declared, “Altseason has just started,” to his 72,900 followers. Key Metrics to Watch Bitcoin dominance, often seen as an altcoin season indicator, stood at 55.11% at publication, down 7.88% over the past month, per TradingView. Additionally, rising funding rates for perpetual futures—ranging between 4% and 6% monthly—highlight traders’ leveraged optimism but could erode profits if prices stagnate.
