Author: Ciaran Lyons; Source: Cointelegraph

A cryptocurrency venture capitalist warns, “Once Momentum is picking up,” and market participants may be caught off guard by “some killer wicks” on the charts. The alternative currency market has seen a surge since Donald Trump won the US presidential election, but one venture capitalist has warned of near-term volatility as profit-taking activity by institutional investors increases.

However, not all traders agree with this.

"Felix Hartman, managing partner of Hartman Capital, said in an X post on December 7: "Considering that altar season is temporarily over, Finish.

Traders may continue to be irrational, but we are in a position where teams and risk "Once the momentum turns, we have to take the leverage out and see some killers," Hartman said. wick. He explained that annualized funding rates for most altcoins are now “north of 100%,” with recent “movements purely driven” by perpetual traders amid declining spot volumes.

Hartman said: "It will be ugly to put your feet down."

Source Felix Hartmann

CoinMarketCap data shows that among the top 100 cryptocurrencies, the three alternative currencies with the highest gains since November 1 are: Hedera (HBAR), increased by 99.31%; IOTA (IOTA), increased by 79.61%; JasmyCoin (JASMY), increased by 72.47%.

In 2021, after a huge surge in the altcoin market, some altcoins fell sharply within a few months.

20Solana (SOL) hit $248.36 in November 2021 before plummeting 64% to $89 in January 2022. XRP (XRP) also faced a plunge, losing around 51% over the same period.

However, other cryptocurrency traders believe that this is just the beginning of the alt-coin season.

Pseudo-anonymous crypto trader MilkyBull Crypto said in an X post on December 6 that “going from this month to March seems logical.”

He added: "It will last about 90 days.

Arji has just started," the teacher told his 72,900 X followers.

Traders often monitor Bitcoin’s dominance as a key indicator of the start of the alt-coin season. At press time, Bitcoin accounted for 55.11%, down 7.88% over the past 30 days, according to TradingView.

On December 4, Cointelegraph reported that, according to data from CoinGlass, the 30-day financing rate for perpetual futures has increased significantly, with longs paying 4% to 6% per month to maintain leveraged positions.

While these costs may seem manageable during a strong uptrend, they can quickly eat into traders' profits if prices stall or fall.