DigitalToday reporter Jinju Hong - Doctor Profit, known as a prominent cryptocurrency trader, is selling holdings of altcoins including XRP and bracing for a market correction. He judged that as altcoin trading volume and leverage have risen excessively, the likelihood of a correction has increased in the near term rather than further gains.

On Oct. 2 (local time), blockchain outlet Decrypt reported that Doctor Profit recently said on X, formerly Twitter, that the altcoin market is overheated and that he will not make new purchases for the time being.

He pointed to the recent rise in altcoin volume to about four times bitcoin volume as a sign of overheating. He also said excessive leverage is a key risk factor for the market. He explained that if prices fall amid a surge in borrowing-based trading, forced liquidations and cascading sell-offs could occur.

Doctor Profit said he recently sold XRP and is waiting for a better re-entry point. He sold Ondo Finance (ONDO) after realizing a 73 percent profit, and he also closed his Hedera (HBAR) position after securing a small gain.

He stressed that with the altcoin market overheated, he has no plans to buy new altcoins. He has not withdrawn his long-term outlook for XRP. He said he could buy XRP again if market conditions improve and prices become more attractive.

He also bet on a short-term decline in bitcoin. Doctor Profit said he opened a short position when bitcoin was at $86,200, and placed additional short orders in the $86,500 to $89,500 range. He set a target price of $79,000.

That reflects his previous view that bitcoin would correct after rising to around $88,000. He has reduced overall market risk exposure by closing altcoin positions while betting on a short-term decline in bitcoin.

He distinguishes between short-term trading and long-term investment assets. Doctor Profit said he continues to hold bitcoin, ethereum (ETH), Circle (CRCL) and Coinbase (COIN) as long-term investment positions. He groups these assets under the label "Galactic Three" and sees them as investments separate from short-term altcoin trading.

Market indicators show caution and expectations at the same time. The Crypto Fear & Greed Index is currently 70, down from 82 recorded on Aug. 27. But compared with 5 recorded in February, investor sentiment has largely recovered.

The Altcoin Season Index came in at 55. It is below 75, the level typically seen as indicating a broad-based altcoin bull market, but is above 40 in August. That suggests sentiment in the altcoin market is improving, but it is still too early to view it as a full-fledged altcoin market.

Some altcoins have already posted steep gains. Quant (QNT) has risen more than 244 percent over the past three months, and Ethena (ENA) has gained 217 percent. Zcash (ZEC) has also climbed 202 percent in recent weeks. Uniswap (UNI), meme coin PUMP and Arbitrum (ARB) also posted strong gains.

With volume surging and some tokens jumping sharply in a short period, expectations for further gains and concerns about overheating are both rising in the market.

Meanwhile, market participants' views are split. While Doctor Profit warned of a possible correction in the altcoin market and moved to raise cash, other analysts see a full-fledged altcoin season drawing closer. Cryptollica forecast that an altcoin bull market is approaching and that XRP could lead it.

Ultimately, the direction of the cryptocurrency market is expected to depend on how much altcoin volume and leverage are sustained. Market attention is growing on whether overheated trading will lead to further gains or turn into a correction accompanied by forced liquidations.

This is why I decided to exit Altcoins: Altcoin spot volume is now 4× bigger than the volume on Bitcoin, and the market has become heavily overleveraged. This is exactly why I took profits. ONDO sold with 73% profit, and I’m out of HBAR with a smaller profit and XRP, waiting for a better entry. I’m not interested in buying altcoins in these conditions. The market is too hot, and I expect a correction. That’s why I’m short BTC from $86,200, with additional short orders between $86,500–$89,500 My BTC and Galactic Three positions ETH, CRCL and COIN remain untouched. I’m following the long-term plan laid out in my Galactic Three Report. When BTC was at $60,000, I called for $88,000. After that rally, I outlined a correction toward $79,000, and that remains my next target. I’m positioning for that correction! And altcoins are always a great distraction and liquidity grab. This is why I’m out of Alts! The real value is only in Premium, Real time updates happen only at https://t.co/Qx4dZU3sVM. Everyone out of premium is missing out on very important real time updates.