Matrixport veteran issues cautionary warning as Bitcoin surges past $62k.
Bitcoin’s impressive rally toward its previous all-time high has prompted Matrixport’s co-founder, Daniel Yan, to issue a warning about a possible correction. Yan tweeted that there could be a market retrace of up to 15% in April, coinciding with the anticipated Bitcoin halving. The cryptocurrency market has been experiencing euphoria as its total market cap exceeded $2.3 trillion, with a 6% gain in a single day, according to CoinGecko. Yan advised caution, especially in March, a historically uncertain month for cryptocurrencies. While it is uncertain whether a new all-time high will occur before the correction or vice versa, long-term holders have little reason to worry. However, Yan cautioned short-term traders to remain vigilant in the coming month.
Yan’s warning came as Bitcoin broke above $62,000 for the first time since late 2021, gaining over 9% in 24 hours and reaching a 28-month high. The increasing demand for spot Bitcoin ETFs is believed to be a major driving force behind Bitcoin’s price surge. Spot BTC ETFs saw net inflows of $576 million on February 27, with BlackRock’s IBIT product achieving a historical high of $520 million in single-day net inflows, according to SoSoValue. BlackRock’s spot Bitcoin ETF has attracted over $6.5 billion since its official launch on January 11, and the Wall Street giant holds over $8 billion in BTC with Coinbase custody for its exchange-traded fund.
