Felix Hartmann, managing partner at Hartmann Capital, has stated that the altcoin season is “already over.” He warned traders of an imminent sharp correction.

“Most altcoins currently have funding rates exceeding 100% annually. Recent movements have been driven solely by the perpetual futures market, while spot trading volumes are declining. The pullback will be brutal,” Hartmann wrote on Twitter.

Considering alt season tapped out for now.

Most alts now have funding rates north of 100% annualized. Last moves purely perp driven, spot volumes declining.

Leg down will be ugly.

Doing some light 2x long BTC, 1x short tapped out dino coins

Traders may stay irrational,… https://t.co/s066BWjtsr pic.twitter.com/BEEzhpLnBe
— Felix Hartmann (@FelixOHartmann) December 7, 2024

Hartmann highlighted that while traders may continue to act “irrationally,” the market has reached a phase where teams and venture capitalists are scaling back their investments more aggressively.

“Once the momentum fades, we’ll need to unwind leverage and face some devastating wicks,” he added.

Hartmann appears to be referencing the market situation in 2021, where many altcoins, after a rapid surge, crashed dramatically within months.

A Contrasting View

Meanwhile, other members of the crypto community believe that the altcoin season is just beginning. For instance, trader Mikybull predicts that the current cycle will last approximately 90 days, running from December 2024 to March 2025.

#ALTSEASON lasts about 90 days

From this month till March seems logical. pic.twitter.com/6X6KTgBzPD
— Mikybull 🐂Crypto (@MikybullCrypto) December 5, 2024

A key indicator of altseason is the decline in Bitcoin dominance. At the time of writing, this metric stands at 55.14%, having dropped 7.8% over the past month.

Earlier, experts from Bitwise pointed out the stability of altcoins despite Bitcoin’s high volatility.

The debate over the potential continuation or conclusion of altseason remains a heated topic within the crypto community, with opinions split on the future trajectory of altcoins.