Daniel Yan, one of the co-founders of Matrixport, a Singaporean firm specializing in cryptocurrency services, predicts that a market correction is on the horizon after Bitcoin recently reached its highest price since 2021.
Yan expressed caution regarding the current sentiment of the market in a message he wrote on February 28th. He believes that by the end of April, there will likely be a healthy correction of approximately 15%. He justified his viewpoint by highlighting the macroeconomic complexities associated with the month of March. Yan pointed to various factors such as the upcoming meeting of the United States Federal Reserve, the Bitcoin halving event, and Ethereum’s Dencun upgrade. In Yan’s own words:
“March is a tricky month from a macroeconomic perspective. It is important to be vigilant and mindful of the potential impact of events such as the US Federal Reserve meeting, the Bitcoin halving, and Ethereum’s Dencun upgrade.”
On the same day, Bitcoin surpassed the significant $60,000 milestone, a level previously achieved during the bull market of 2020 to 2021. The current data from the Crypto Fear & Greed Index indicates extreme greed, with a score of 82/100. Investors have been enthralled ever since the US Securities and Exchange Commission approved several spot Bitcoin exchange-traded funds (ETFs) last month. One ETF alone, BlackRock’s iShares Bitcoin Trust, now manages assets worth $7.5 billion.
Despite Yan’s cautious stance, it should be noted that Matrixport’s market predictions have not always been accurate. In January, when Bitcoin was trading at $40,800, the firm cautioned investors about the potential disapproval of spot Bitcoin ETFs by the SEC due to political risk factors. However, spot Bitcoin ETFs have indeed been approved since then, resulting in a return of over 50% for BTC within a few weeks.
Related: Bitcoin’s price breaches $60K for the first time in over two years.