Daniel Yan, one of the co-founders of Matrixport, a crypto services firm in Singapore, believes that a market correction is on the horizon as Bitcoin recently reached its highest price since 2021.
In a post on Feb. 28, Yan expressed caution about the current market sentiment and predicted a healthy correction of around 15% by the end of April. He explained his reasoning by highlighting the macroeconomic challenges of the month of March, including the upcoming meeting of the United States Federal Reserve, the Bitcoin halving, and Ethereum’s Dencun upgrade.
Coincidentally, Bitcoin surpassed the $60,000 mark on the same day, 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. The recent approval of several spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission has fueled investor frenzy, with BlackRock’s iShares Bitcoin Trust now managing $7.5 billion in assets.
Despite Yan’s bearish outlook, Matrixport’s track record in market predictions has not always been accurate. In January, when Bitcoin was trading at $40,800, Matrixport cautioned investors about the potential political risks that could prevent the approval of spot Bitcoin ETFs by the SEC. However, the SEC has since approved such ETFs, and Bitcoin has seen a return of over 50% within weeks.
Related: Bitcoin breaks the $60K barrier for the first time in over 2 years.