Daniel Yan, one of the co-founders of Matrixport, a crypto services firm based in Singapore, has stated that a market correction is on the horizon following Bitcoin’s recent surge to its highest level since 2021.
Yan expressed caution about the current sentiment in the market, noting that he believes a healthy correction of approximately 15% will occur by the end of April. He explained that the month of March is a critical period from a macroeconomic standpoint, citing factors such as the U.S. Federal Reserve meeting, the Bitcoin halving event, and the Ethereum Dencun upgrade as potential catalysts for market volatility.
On the same day that Yan shared his views, Bitcoin surpassed the $60,000 mark, a level not seen since the bull market of 2020-2021. The Crypto Fear & Greed Index currently stands at 82/100, indicating extreme greed among investors. This heightened enthusiasm can be attributed in part to the recent approval of several spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). One of these ETFs, BlackRock’s iShares Bitcoin Trust, now manages assets worth $7.5 billion.
It is worth noting, however, that Matrixport’s market predictions have not always been accurate. In January, when Bitcoin was trading at $40,800, the firm cautioned investors about potential political risks that could prevent the approval of spot Bitcoin ETFs by the SEC. Despite this warning, spot Bitcoin ETFs were indeed approved, resulting in Bitcoin’s price surging by over 50% within a few weeks.
Related: Bitcoin’s price breaches $60,000 for the first time in over two years.