🌎 Bitcoin Price Surge Triggers Correction Concerns, Matrixport Co-founder Cautions

Bitcoin is on a steady climb towards its previous all-time high, prompting caution from Daniel Yan, co-founder of Matrixport, who believes a market correction may be imminent.

Yan took to Twitter to suggest that a potential market retrace of up to 15% could occur in April, coinciding with the upcoming Bitcoin halving event that will reduce mining rewards. The cryptocurrency market recently surpassed a total market cap of $2.3 trillion, marking a 6% increase in a single day, according to CoinGecko.

As industry experts anticipate a volatile month ahead due to macroeconomic factors like the Federal Reserve meeting and Bitcoin halving, Yan warned of potential risks for short-term traders in the coming weeks.

Despite the uncertainty surrounding a new all-time high for Bitcoin, Yan reassured long-term holders that there is little cause for concern. However, he advised traders to remain vigilant in the face of possible market fluctuations.

Key Points:

Daniel Yan from Matrixport predicts a market correction of up to 15% in April.
Bitcoin’s total market cap surpasses $2.3 trillion, triggering caution among industry experts.
Short-term traders advised to stay alert as Bitcoin approaches potential price fluctuations.

“I think it will happen in the next month or so, as March is a tricky one from a macroeconomic perspective already (Fed meeting and BTFP). With the Dencun mainnet upgrade soon behind us and Bitcoin halving before us, the month of March could be vulnerable.” – Daniel Yan, Matrixport co-founder

Yan’s warnings come as Bitcoin recently broke above $62,000, reaching a 28-month high just weeks before the halving event. The surge in Bitcoin’s price is attributed to increasing demand for spot Bitcoin ETFs, with net inflows reaching significant levels.

SoSoValue reported that spot Bitcoin ETFs received net inflows of $576 million on Feb. 27, with BlackRock’s IBIT product experiencing a historical high of $520 million in single-day net inflows. BlackRock’s spot Bitcoin ETF has seen over $6.5 billion in inflows since its launch on Jan. 11.

With the cryptocurrency market poised for potential volatility in the coming months, investors and traders are advised to stay informed and exercise caution amidst the changing landscape.