Matrixport Warns of Market Excitement, Correction After Bitcoin’s $60K Milestone
Daniel Yan, founder of Singapore-based crypto services firm Matrixport, has said that a market correction is on the way after Bitcoin (BTC) reaches its all-time high starting in 2021.
“The market sentiment has reached a point where I think we have to be careful,” the co-founder wrote on February 28. “I think we should see another healthy ~15% correction by the end of April.” In explaining why, March was a “difficult” month from a macroeconomic perspective, pointing to examples such as the US Federal Reserve meeting, the Bitcoin halving and Ethereum's devaluation. That's what he said.
“From where, 65k or 60k or now? I really don't know. I don't even know which is coming soon – a new ATH in BTC or a correction. Again – if you don't have to worry too much about it. You are a long-term owner, for those who are tempted to trade short-term moves, look at March .
On the same day, Bitcoin surpassed the $60,000 benchmark previously seen in the 2020 to 2021 bull market. The Crypto Fear & Greed index currently shows a score of 82/100, indicating high levels of greed. Investors have been in a frenzy since the US Securities and Exchange Commission (SEC) approved several positions last month, with $7.5 billion in assets now managed by BlackRock's iShares Bitcoin Trust.
Despite that pessimism, Matrixport isn't always right in its market predictions. In January, when Bitcoin was selling at $40,800, Matrixport warned investors that the SEC may not approve the position of Bitcoin ETFs due to political risks. Since then, spot Bitcoin ETFs have, in fact, been approved, with Bitcoin recovering more than 50% in a matter of weeks.
Euphoria: Market sentiment has reached a point where I think we need to be cautious – it might be a good idea to revisit my posted tweet on possible corrections. I think we should see another healthy ~15% correction by the end of April.
— Daniel Yan (@_D_Y_A_N) February 28, 2024
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