Daniel Yan, one of the co-founders of Matrixport, a crypto services firm 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 on February 28, Yan expressed caution about the current market sentiment, stating that he expects to see a healthy correction of approximately 15% by the end of April. He explained his reasoning by highlighting the potential macroeconomic challenges in March, including important events such as the U.S. Federal Reserve meeting, the Bitcoin halving, and the Ethereum Dencun upgrade. Yan emphasized the significance of these factors:
On the same day, Bitcoin surpassed the $60,000 milestone, a level previously seen during the bull market of 2020 to 2021. The Crypto Fear & Greed Index currently indicates extreme greed with a score of 82/100. This surge in investor enthusiasm 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.
Despite Yan’s bearish outlook, it’s worth noting that Matrixport hasn’t always been accurate with its market predictions. In January, when Bitcoin was trading at $40,800, the company cautioned investors about the potential rejection of spot Bitcoin ETFs by the SEC due to political risks. However, spot Bitcoin ETFs were ultimately approved, resulting in Bitcoin’s value increasing by over 50% in a matter of weeks.
Related: Bitcoin’s price surpasses $60K for the first time in over two years.