Matrixport Co-Founder Warns of Correction After Bitcoin Hits $60K

Maxwell Mutuma
February 28, 2024
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Bitcoin price

Highlights

  • Daniel Yan, Matrixport co-founder, warns investors of a potential market correction following Bitcoin's recent surge past $60,000.
  • The Crypto Fear & Greed Index indicates extreme greed in the market with a score of 82 amid Bitcoin ETF approvals.
  • Yan suggests a 15% market correction could occur by the end of April, citing March's macroeconomic uncertainties.

Daniel Yan, co-founder of the Singapore-based cryptocurrency services firm Matrixport, has issued a cautionary note to investors following the recent Bitcoin surge. The digital currency surpassed the $60,000 mark for the first time since 2021, signaling a potential market euphoria. 

Yan’s comments come amidst growing investor interest and an extreme greed sentiment in the market, as indicated by the Crypto Fear & Greed Index’s score of 82. This enthusiasm has been further fueled by the U.S. Securities and Exchange Commission’s (SEC) approval of several spot Bitcoin exchange-traded funds (ETFs), including a notable one managed by BlackRock’s iShares Bitcoin Trust, which now oversees $7.5 billion in assets.

Yan highlighted the unpredictable nature of the market, suggesting that a correction of approximately 15% could be on the horizon by the end of April. He points to March as a critical month, fraught with macroeconomic uncertainties such as the U.S. Federal Reserve’s meeting, the anticipated Bitcoin halving, and the Ethereum Dencun upgrade. Despite the current highs, Yan’s statement underscores cryptocurrency markets’ inherent volatility and unpredictability, advising investors, especially those eyeing short-term gains, to exercise caution.

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Matrixport Cautious Despite Recent Bitcoin ETF Wins

Yan’s cautionary stance is rooted in macroeconomic factors influencing market sentiment and investor behavior. The anticipation surrounding the U.S. Federal Reserve’s upcoming meeting and significant crypto events like the Bitcoin halving and Ethereum upgrade are noteworthy as potential market volatility catalysts. Despite the positive momentum driven by the SEC’s approval of spot Bitcoin ETFs, Yan’s perspective reflects a broader caution against the backdrop of rapid gains and heightened market activity.

The historical context of Matrixport’s market predictions provides additional insight. In January, amidst Bitcoin’s trading at $40,800, the firm expressed skepticism regarding spot Bitcoin ETFs’ approval due to political risks. However, the subsequent approval of these ETFs contradicted the firm’s expectations, leading to a significant surge in Bitcoin’s value. This juxtaposition of predictions and outcomes highlights the challenges in forecasting cryptocurrency market movements, emphasizing digital asset investments’ complexity and dynamic nature.

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Matrixport’s Regulatory Compliance Efforts

As Matrixport navigates the complexities of the cryptocurrency market, it has also taken significant steps towards enhancing its regulatory compliance. On February 26, the company applied to the Hong Kong Securities and Futures Commission (SFC) for a virtual asset trading license.

This move signals Matrixport’s commitment to adhering to regulatory standards, a crucial aspect of building trust and stability within the digital asset market. The application is part of a broader trend within the cryptocurrency industry, with 21 companies, including prominent names like Crypto.com, Bixin, and HTX (formerly Huobi Global), seeking similar regulatory approvals.

Read Also: Toncoin (TON) Price Soars 35% On Telegram Advertising Platform Launch

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.