Sun 08 Dec 2024 ▪
3
min reading ▪ by
Micaiah A.
Altseason here, altseason there: crypto investors are dreaming of a new altcoin season. But what will it really look like? Size, duration, intensity… Speculation is rife. However, behind this enthusiasm, expert voices warn: headwinds, amplified by institutional profit-taking, could sweep the market. Is a decisive shift looming for altcoin traders?
Altseason: between hopes and realities
Despite impressive gains for altcoins on fire like Hedera (+99%), IOTA (+79%) or JasmyCoin (+72%), some observers are sounding the alarm. Felix Hartmann, partner at Hartmann Capital, believes that “ VC teams and investors start cutting more aggressively ».
According to him, “ killer locks » could appear on the charts if momentum weakens, a striking image that illustrates the instability of this market.
The data doesn’t lie: altcoin funding rates exceed 100% annualizeda clear sign of a market driven primarily by margin traders, as spot volumes decline. A 2021 precedent shows how Solana fell 64% and XRP 51% in a few months after a meteoric rise.
Some notable facts about altcoins recently :
- Hedera: +99.31% since November 1;
- IOTA: +79.61% over the same period;
- JasmyCoin : +72,47 % selon CoinMarketCap.
The parallels with 2021 are worrying, but optimists like MilkyBull Crypto estimate that the altseason could last 90 days. It’s up to everyone to take their bet, but beware of a cold shower.
Crypto investors face a tense season
For many crypto traders, bitcoin dominance is the key indicator. Currently at 55%, it fell by almost 8% in a month. This gives hope for a redistribution towards altcoins. But be careful: high financing rates, between 4% and 6% per month for perpetual contracts, can quickly erode margins if prices stagnate or fall.
Some, like crypto trader Sensei, see this drop as an opportunity: “ The altseason has only just begun », he tells his 72,900 subscribers.
However, this vision is opposed to that institutional investors, who prefer to secure their gains. The gap between optimism and caution highlights the chronic volatility of the crypto market.
In short, the altseason will largely depend on a wavering bitcoin. But if predictions of a reinvigorated BTC under Trump come true, will altcoins rise to the challenge? A war of the giants is coming.
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Micaiah A.
The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
