Matrixport Co-Founder Predicts 15% Crypto Market Correction

The cryptocurrency market is currently in a state of “euphoria,” prompting participants to exercise caution, according to Matrixport co-founder 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.

— Daniel Yan (@_D_Y_A_N) February 28, 2024

“I think we should see another healthy ~15% correction by end-April,” he warned. 

Yan noted that March will be a challenging period from a macroeconomic perspective. The month is set to include a Federal Reserve meeting on the base rate and the release of a report on the US bank emergency funding program. 

Additionally, on March 13, the Ethereum mainnet will undergo the Dencun upgrade, aimed at enhancing scalability and reducing fees. 

The Matrixport co-founder believes that the market will be particularly vulnerable in the period following this significant upgrade and preceding the Bitcoin halving. 

“Where will the drop start from? $65,000, or $60,000, or now? I really don’t know. I don’t even know what will come first: a new all-time high or a correction,” Yan added. 

In his view, long-term investors “don’t need to worry too much,” while traders should be more vigilant in March. 

At the time of writing, Bitcoin is trading at $60,500, having gained about 6% over the past day. According to CoinGecko, the asset’s market capitalization has reached $1.18 trillion with a trading volume of $51 billion. 

Amid the recent rally, Glassnode analysts have noted that the dynamics of capital flows, exchange activity, leverage in crypto derivatives, and institutional demand indicate a surge in risk appetite among Bitcoin investors.

Earlier, Matrixport analysts suggested that the first cryptocurrency could rise to $63,000 in March, citing the halving as one of the catalysts. 

Previously, Fundstrat co-founder Tom Lee predicted digital gold could reach $150,000 by the end of 2024.