Felix Hartmann emphasized that traders should prepare for a sharp correction in altcoins:
“Right now, most altcoins have funding rates above 100% annualized. The latest moves are driven solely by the perpetual futures market, but spot volumes are declining. The season is over. The setback will be terrible.”
According to Hartmann, the market has already reached a stage where venture capital funds and large companies have begun to rapidly reduce their capital investments:
“Once the momentum runs out, we will have to unleverage and see some killer wicks on the asset charts.”
Hartmann recalled the situation in 2021, when after a sharp jump in altcoins, some coins plummeted within a few months and traders suffered large losses.
Previously, experts interviewed by The Block stated that altcoins demonstrate stability against the backdrop of increased Bitcoin volatility and have significant growth potential.
Source: Bits
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