Matrixport Raises Concerns Over Crypto Market Optimism After $60K Bitcoin Surge

Matrixport, a blockchain financial service firm based in Singapore, is sounding the alarm about potential market euphoria and a looming correction after Bitcoin surged to its highest price since 2021. Daniel Yan, co-founder of Matrixport, expressed caution in a statement on February 28, suggesting that the market sentiment has reached a level that warrants careful attention.

Yan predicts a forthcoming correction of approximately 15% by the end of April, citing various macroeconomic factors in the month of March. Among these factors, he highlights the upcoming meeting of the United States Federal Reserve, the Bitcoin $60,610 halving, and Ethereum’s Denicun upgrade as potential triggers for market volatility. Yan 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.”

Despite Bitcoin surpassing the $60,000 milestone on the same day, Yan emphasizes the need for caution, especially for those considering short-term trading moves. The Crypto Fear & Greed Index currently indicates extreme greed with a score of 82/100.

Matrixport’s previous market predictions have not always been accurate. In January, when Bitcoin was trading at $40,800, the firm warned investors about the potential disapproval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) due to political risk factors. However, contrary to this prediction, spot Bitcoin ETFs were approved, and BTC saw a significant return of more than 50% within weeks.

Investors have been riding a wave of enthusiasm following the SEC’s approval of several spot Bitcoin exchange-traded funds (ETFs) last month. Notably, BlackRock’s iShares Bitcoin Trust now manages $7.5 billion worth of assets, reflecting the growing interest in crypto investment products despite the cautious stance from Matrixport.