Starkiller Calls Crypto Bottom, Exits Shorts as Altcoin Risks Persist

Starkiller Capital, a quantitative hedge fund focused on digital assets, views Bitcoin and Ether’s recovery above their 200-day moving averages as evidence that the broader crypto cycle has turned. The closely watched technical threshold often signals improving long-term momentum, though the fund said a market recovery would not necessarily lift all tokens, as investors increasingly distinguish between speculative projects and protocols supported by sustainable economics.

Starkiller declared the crypto market cycle had bottomed and said it closed all short positions last month. The fund did not disclose the exact closing date, position size or value. It cautioned that low-quality altcoins without meaningful revenue were unlikely to regain their former standing, arguing that the next phase of the market would favor protocols generating real cash flow and operating credible, sustainable token-economic models.