Felix Hartmann, founder of Hartmann Capital, suggests that the crypto market may be nearing a local bottom due to persistently negative funding rates and widespread bearish sentiment, which he describes as potentially indicative of market recovery. He notes that quality altcoins have retraced significantly, erasing previous gains from Q4 2024. Ether, previously trading above $4,000, has pulled back to $2,639, while Solana has dropped to $201.15. Analyst Matthew Hyland predicts that altcoins won't reach December highs for at least two months. Hartmann observes that the overall crypto sentiment is severely negative, often seen as a precursor to sector-wide rallies, supported by the latest Fear and Greed Index reading of 46. He mentions that while the market may remain volatile, much of the unlocked venture capital tokens have been liquidated, indicating that the current choppiness could be nearing its end. Additionally, Bitwise's chief investment officer highlights a stark contrast between the poor retail sentiment and the bullish outlook from professional investors.

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