March 27, 2024
Matrixport Cautions on Bitcoin Euphoria, Foresees Correction
Latest Cryptocurrency News

Matrixport Cautions on Bitcoin Euphoria, Foresees Correction

Daniel Yan, co-founder of Matrixport, a Singaporean crypto services firm, anticipates an imminent market correction following Bitcoin’s surge to $61,293, its highest level since 2021. Yan expressed caution, stating, “The sentiment of the market has come to a level where I think we should be cautious.” He predicts a healthy correction of approximately 15% by the end of April.

“From where, 65k or 60k or now? I really don’t know. I don’t even know which comes sooner – a new ATH in BTC or the correction. Again – you don’t have to bother too much on this if you are a long-term holder. For those who are tempted to trade the short term moves, watch March.”

Highlighting the complexities of March from a macroeconomic perspective, Yan pointed to significant events such as the U.S. Federal Reserve’s meeting, Bitcoin halving, and the Ethereum Dencun upgrade as potential influencing factors for the anticipated correction.

Bitcoin recently surpassed the $60,000 milestone observed during the 2020-2021 bull market. 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 (SEC) has fueled investor frenzy, with BlackRock’s iShares Bitcoin Trust managing $7.5 billion in assets.

Despite Yan’s cautious outlook, it’s worth noting that Matrixport has not consistently provided accurate market predictions. In January, when Bitcoin traded at $40,800, Matrixport warned of potential non-approval of spot Bitcoin ETFs by the SEC due to political risk factors. Contrary to this prediction, the SEC did approve spot Bitcoin ETFs, leading to a more than 50% surge in Bitcoin’s value within weeks.

The crypto market remains dynamic, influenced by regulatory developments, macroeconomic factors, and investor sentiment. As Bitcoin reaches new highs, experts like Yan caution about potential corrections, emphasizing the need for vigilance in navigating the evolving landscape. Investors will closely monitor market developments to assess the accuracy of such predictions and make informed decisions.

Daniel Yan’s warning about an impending market correction follows Bitcoin’s notable surge, and his cautious stance aligns with ongoing discussions about the crypto market’s stability amid significant macroeconomic events.

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