The crypto market is navigating turbulent waters as altcoins face significant sell-offs and Bitcoin struggles to hold its historic $100,000 level. Felix Hartmann, founder of Hartmann Capital, has painted a grim picture for altcoins, suggesting that most will remain in a downtrend until late January 2025.
What’s Happening in the Market?
Over the past 24 hours, the altcoin market has faced substantial losses:
- Ethena: Down 10.46%
- Pepe: Dropped 10.62%
- Bonk: Fell 8.59%
According to CoinGlass, long position liquidations totaled $481.62 million, further exacerbating the decline.
Meanwhile, Bitcoin, which recently achieved a record high of $100,000 on December 5, has dipped to $96,270 as of December 10 — a 1.5% drop in the last 24 hours.
Expert Insights on the Market
Felix Hartmann highlighted the current lack of momentum in the altcoin market, stating:
“Not much alpha in chasing alts here as many just topped after 2–3x moves in a week.”
Hartmann’s analysis suggests that short-lived rallies in certain altcoins are unlikely to offset the broader bearish sentiment.
On Bitcoin, Hartmann expressed cautious optimism, citing a “fair chance” for the cryptocurrency to retest the $99,000 level, driven by potential short squeezes.
Similarly, CryptoSea co-founder Daan de Rover noted that liquidity is accumulating above Bitcoin’s current price. This could pave the way for an upward move:
“There’s a lot of liquidity building up on the topside for Bitcoin. We all know what’s next.”
If Bitcoin breaches $99,000, $1.53 billion in short positions could be liquidated, potentially sparking additional buying pressure.
Is This the Final Shakeout?
Amid the uncertainty, pseudonymous trader Mister Crypto remains optimistic, describing the current dip as a “necessary shakeout” before exponential growth:
“This was the final shakeout before the real exponential breakouts.”
Hartmann also hinted that now might be an opportune time for long-term investors to re-enter the market:
“Perfect is the enemy of good, hence it seems like an okay time to bring long bias back.”
What’s Next for Crypto?
With Bitcoin hovering near key psychological levels and altcoins in a fragile state, the market faces a critical juncture. Traders and investors should consider these scenarios:
- Bitcoin Retests $99K: A move above this level could ignite broader market recovery.
- Altcoin Consolidation: Most altcoins are likely to remain under pressure until early 2025.
- Long-Term Strategies: Current volatility might present buying opportunities for those with a long-term perspective.
The cryptocurrency market is undergoing a pivotal period marked by volatility and uncertainty. While Bitcoin’s trajectory remains central to market sentiment, altcoins face prolonged challenges in the near term.
As always, investors should exercise caution and consider diversifying their portfolios to navigate the evolving landscape effectively.
Altcoin Market Faces Turmoil: Felix Hartmann Predicts Prolonged Downtrend was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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