Felix Hartmann, founder of Hartmann Capital, suggests the crypto market may be nearing a local bottom due to prolonged negative funding rates and pervasive bearish sentiment, which he interprets as a potential bullish signal. He notes that funding rates have been negative, indicating a higher number of short positions. Quality altcoins have retraced significantly, erasing Q4 2024 gains, with Ethereum's price dropping from over $4,000 to $2,639. Market sentiment has worsened, with the Crypto Fear and Greed Index showing a score of 46, down from a previous score of 60. Despite the bearish sentiment among retail investors, professional investors remain bullish, highlighting a divide in market outlook. Hartmann indicates that while the market may continue to fluctuate, it could represent the end of a volatile period as the majority of venture capital token allocations have already been distributed recently. Overall, Hartmann conveys a cautiously optimistic tone about the potential for recovery.

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