Daniel Yan, one of the founders of Matrixport, a cryptocurrency services company based in Singapore, believes that a market correction is on the horizon following Bitcoin’s recent surge to its highest level since 2021.
In a statement made on February 28, Yan expressed caution about the current market sentiment and predicted a healthy correction of around 15% by the end of April. He cited the month of March as a particularly challenging period from a macroeconomic standpoint, highlighting events such as the U.S. Federal Reserve meeting, the Bitcoin halving, and the Ethereum Dencun upgrade as contributing factors. Yan said:
“March is a tricky month in terms of macroeconomics, and we need to be mindful of the potential impact of events like the U.S. Federal Reserve meeting, the Bitcoin halving, and the Ethereum Dencun upgrade.”
On the same day, Bitcoin surpassed the $60,000 milestone, a level not seen since the bull market of 2020-2021. The Crypto Fear & Greed Index currently stands at 82 out of 100, indicating extreme greed among investors. This heightened optimism can be attributed to the recent approval of several spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). One such ETF, BlackRock’s iShares Bitcoin Trust, now manages assets worth $7.5 billion.
It is worth noting that Matrixport’s market predictions have not always been accurate. In January, when Bitcoin was trading at $40,800, the company issued a warning to investors about the potential political risks that could prevent the approval of spot Bitcoin ETFs by the SEC. However, contrary to their prediction, spot Bitcoin ETFs were indeed approved, and Bitcoin’s value increased by more than 50% within a matter of weeks.
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Bitcoin’s price breaches $60,000 for the first time in over two years.