As Bitcoin‘s value soared past the $60,000 mark, not witnessed since the previous year, Matrixport Co-Founder Daniel Yan counseled investors to remain vigilant. The landmark achievement could presage a new all-time high for the premier cryptocurrency, stirring a frenzy of investor interest.
Market Euphoria Meets Prudent Warning
Yan’s advice comes at a time when the Crypto Fear & Greed Index, a meter of market sentiment, shows ‘extreme greed’ with a score of 82. This investor zeal coincides with a recent green light from the U.S. SEC for BlackRock’s iShares Bitcoin Trust and other Bitcoin ETFs, which currently boast a substantial $7.5 billion asset management portfolio.
Uncertain Times Ahead
Despite the current upbeat mood, Yan foresees a volatile market that could see a notable downturn, predicting a potential 15% correction by April’s end. He points to March’s array of significant events that could impact the market, such as the Federal Reserve’s meeting, the Bitcoin halving, and Ethereum‘s anticipated Denomination upgrade.
In his own words, Yan expressed concerns about the steep increase in market sentiment, suggesting that revisiting his earlier predictions on possible market corrections would be prudent. He emphasized the need for a ‘healthy correction’ to stabilize the market.
Yan’s cautious stance reflects his consideration of macroeconomic factors that heavily influence market sentiment and investor decisions. Despite the optimism following SEC’s nod to spot Bitcoin ETFs, Yan maintains a conservative outlook amidst the flurry of market activity and rising Bitcoin value. His company, Matrixport, is recognized for notable market forecasts and maintains a critical voice in the cryptocurrency space. Recently, the company sought a virtual asset trading license from the Hong Kong SFC, indicating its ongoing strategic initiatives.