Daniel Yan, one of the co-founders of Matrixport, a Singaporean firm specializing in cryptocurrency services, has expressed his belief that a market correction is on the horizon after Bitcoin reached its highest price since 2021.
In a statement on February 28th, Yan cautioned that the market sentiment has reached a level that necessitates caution. He predicts that by the end of April, there will be a healthy correction of approximately 15%. Yan justified his reasoning by highlighting the macroeconomic challenges of the month of March, citing events such as the upcoming meeting of the United States Federal Reserve, the Bitcoin halving, and Ethereum’s Dencun upgrade.
Following the publication of the article, Matrixport clarified that Daniel Yan, who claims to be the company’s co-founder on his X profile, is currently managing an independent fund and his comments reflect his personal perspective and market views.
On the same day, Bitcoin exceeded the $60,000 milestone that was previously achieved during the bull market of 2020 to 2021. The Crypto Fear & Greed Index currently registers a score of 82/100, indicating extreme greed among investors. The approval of several spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission last month has fueled this frenzy, with one ETF, BlackRock’s iShares Bitcoin Trust, now managing assets worth $7.5 billion.
Despite Yan’s bearish outlook, Matrixport has not always been accurate in its market predictions. In January, when Bitcoin was trading at $40,800, the firm cautioned investors about the potential political risks that could prevent the approval of spot Bitcoin ETFs by the SEC. However, these ETFs have since been approved, resulting in Bitcoin’s value increasing by over 50% within a few weeks.
Related: Bitcoin breaks $60K barrier for the first time in over two years.