Bitcoin price reaches $63,000. Matrixport co-founder warns of imminent cryptocurrency market correction.
In a recent tweet, Matrixport co-founder Daniel Yan sounded the alarm for cryptocurrency enthusiasts by signaling a potential market correction. Yan’s warning post sparked anticipation in the cryptocurrency community as March shows the potential for macroeconomic uncertainty.
Daniel Yan’s Warning
Daniel Yan expressed his views on the prevailing market sentiment in “Euphoria: Market sentiment has reached a level where we think we need to be cautious.”
This follows a previously pinned tweet that discussed the size of a potential correction in the market. Yan expects another healthy correction of about 15% by the end of April. He urged market participants to consider macroeconomic conditions, especially ahead of important events such as the March Federal Reserve meeting and the Build Back Better (BBB) plan.
Asked ‘when?’, Yan replies: “I think it will happen in the next month or so, as March is already a tricky month from a macroeconomic perspective (Fed meeting and BTFP).”
Yan’s analysis hinges on the complex dynamics of next month, which is marked by important macroeconomic events. Federal Reserve meetings and discussions on the Build Back Better plan have added uncertainty to markets, contributing to Yan’s cautious outlook.
Dencun Mainnet Upgrade and Bitcoin Halving
Yan points out specific factors that could be contributing to market weakness in March. The impending Dencun mainnet upgrade and the upcoming Bitcoin halving create an environment that could impact near-term market movements.
Yan admits that he cannot predict whether a new all-time high (ATH) in the price of Bitcoin will come, or whether a correction will come sooner. This uncertainty highlights the challenges short-term traders face in the current market environment.
In his words, “Again, long-term holders don’t need to worry too much about this. “For those tempted to trade short-term moves, watch March.”
Yan shared his cautious perspective in his post, advising long-term holders to remain focused on their investment strategy. However, he emphasizes the importance of closely monitoring market dynamics in March for those trading short-term.