Daniel Yan, one of the co-founders of Matrixport, a Singaporean firm specializing in crypto services, believes that a market correction is on the horizon after Bitcoin recently reached its highest price since 2021.
Yan expressed his cautious outlook on February 28th, stating, “The sentiment of the market has reached a point where I believe we need to proceed with caution. I anticipate another healthy correction of approximately 15% by the end of April.” To support his reasoning, Yan pointed to various macroeconomic factors in the month of March, including the upcoming meeting of the United States Federal Reserve, the Bitcoin halving, and the Ethereum Dencun upgrade. Yan clarified that his comments were his personal perspective and market views, as he is currently running an independent fund.
On the same day, Bitcoin surpassed the $60,000 mark, which was previously seen during the bull market of 2020 to 2021. The Crypto Fear & Greed Index currently shows a score of 82/100, indicating extreme greed among investors. This frenzy was sparked by the approval of several spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission last month. One of these ETFs, BlackRock’s iShares Bitcoin Trust, now manages $7.5 billion worth of assets.
Despite Yan’s bearish sentiment, Matrixport’s market predictions have not always been accurate. In January, when Bitcoin was trading at $40,800, Matrixport cautioned investors that spot Bitcoin ETFs may not be approved due to political risk factors. However, spot Bitcoin ETFs have since been approved, and BTC has seen a return of over 50% within a few weeks.
Related: Bitcoin surpasses $60K for the first time in over 2 years.