Bitcoin Plunges Over 20%; Fund Managers Confirm Altcoin Bear Market Since December 2023

Bitcoin experienced a sharp decline of over 20% this week before a partial recovery, catching numerous crypto fund managers by surprise, The Block reported on February 9. Zaheer Ebtikar of Split Capital noted the unexpected speed of panic selling, while others pointed to a rapid shift in sentiment, surging fear gauges, and significant spot dumping leading to liquidations. According to Pantera Capital's Cosmo Jiang, non-Bitcoin tokens have been in a bear market since December 2023, characterizing the year-to-date trend as a rolling bear across most altcoins. L1D AG co-founder Ray Hindi attributed the deleveraging to overstretched traditional finance themes in January, impacting crypto which still grapples with structural issues from an October 10 liquidation event. Managers maintain low expectations for altcoin outperformance, with Wintermute Ventures' Joscha Kuplewatzky suggesting the market is late-cycle, making broad altcoin investments unattractive without renewed retail engagement.