Altcoins may continue to decline
Felix Hartmann, founder of venture capital firm Hartmann Capital, stated in a tweet on December 10 that most altcoins may continue to decline until the end of January 2025.
“Some altcoins may experience a brief rise, but most may enter a slow decline or consolidation phase in the next 2 to 6 weeks. Chasing altcoins at this time (in my opinion) is unlikely to achieve 'excess returns' (alpha), as many coins have already realized gains of 2 to 3 times within a week, and the upward momentum has basically peaked.”
Return to bullish preference
However, despite Felix Hartmann's relatively conservative stance on altcoin trends, this does not mean he is bearish on the current market situation. Felix Hartmann stated that now might be a time to be moderately bullish.
“Although I originally expected certain altcoins to drop even lower, being overly perfectionistic is a big mistake, so it seems like a good time to take a bullish stance again.”
According to CoinGlass data, the altcoin market has experienced another round of declines in the past 24 hours, with approximately $480 million in long positions being liquidated. According to CoinMarketCap data, the largest decline among the top 100 cryptocurrencies is Ethena (ENA), down 13.36%; Movement (MOVE), down 11.72%; and dydx (DYDX), down 11.16%.
Bitcoin declines but remains strong
Bitcoin (BTC) is currently priced at $96,123, down 1.8% in the past day. Since December 9, Bitcoin has been below the psychological key point of $100,000. However, Felix Hartmann stated that there is a 'considerable likelihood' that Bitcoin will test the $99,000 level again, and this rebound will mainly be driven by 'short squeezing.'
If Bitcoin rises by 2.41% and breaks through the $99,000 level, approximately $1.53 billion in short positions may face liquidation risk.
Daan de Rover, co-founder of CryptoSea, pointed out in a post on X on December 10:
“A large amount of liquidity has accumulated above Bitcoin, and we all know what will happen next.”
This implies that there are a large number of open short contracts or sell orders above the current price of Bitcoin, and a breakthrough of key resistance levels will trigger a short squeeze, driving further rebounds.
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