Matrixport co-founder warns of market euphoria, correction after Bitcoin’s $60K milestone

Daniel Yan, co-founder of Singaporean crypto services firm Matrixport, believes a market correction is imminent following Bitcoin reaching its highest price since 2021.

“The sentiment of the market has come to a level where I think we should be cautious,” Yan wrote on Feb. 28. “I think we should see another healthy ~15% correction by end-April.” In explaining his rationale, Yan said that the month of March is a “tricky one" from a macroeconomic perspective, pointing to examples such as the United States Federal Reserve’s upcoming meeting, the Bitcoin BTCUSD halving and Ethereum’s Dencun upgrade. The co-founder stated:

“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.”

After publication, Matrixport reached out to Cointelegraph to clarify that, Daniel Yan, who states that he is the firm's co-founder on his X profile, "is now running an independent fund and these comments reflect his personal perspective and market views."

On the same day, Bitcoin surpassed the $60,000 benchmark previously witnessed in the bull market of 2020 to 2021. Data from the Crypto Fear & Greed Index currently shows a score of 82/100, indicating extreme greed. Investors have been in a frenzy since the U.S. Securities and Exchange Commission approved several spot Bitcoin exchange-traded funds (ETFs) last month, with $7.5 billion worth of assets now managed by one such ETF, BlackRock's iShares Bitcoin Trust.

Despite Yan’s bearish sentiment, Matrixport has not always been accurate in its market predictions. In January, when Bitcoin was trading at $40,800, Matrixport warned investors that the SEC may not approve spot Bitcoin ETFs due to political risk factors. Since then, spot Bitcoin ETFs have, in fact, been approved, with BTC returning more than 50% within weeks. 

Daniel Yan

Euphoria: the sentiment of the market has come to a level where I think we should be cautious - may be a good idea to revisit my pinned tweet on the size of potential corrections. I think we should see another healthy ~15% correction by end-April.

Feb 28, 2024

Related: Bitcoin breaches $60K for the first time in over 2 years