Bitcoin’s dash past $62k spurs caution warning from Matrixport veteran

Bitcoin continued an impressive run toward its previous all-time high, eliciting vigilance suggestions from Matrixport’s co-founder, who believes a correction is due. 

Matrixport co-founder Daniel Yan tweeted that a market retrace of as much as 15% may be on the cards sometime in April, the same period industry participants anticipate the quadrennial Bitcoin (BTC) halving, which will slash mining rewards. 

Yan said the industry is currently experiencing euphoria as crypto’s total market cap climbed above $2.3 trillion, gaining over 6% in a single day per CoinGecko. Matrixport exec advised caution heading into March, which is typically an uncertain month for cryptocurrencies. 

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

The Matrixport co-founder said it’s unclear if a new BTC ATH will arrive before the correction or vice versa but noted that long-term holders have little cause for concern. Short-term traders, however, should remain alert next month, according to Yan. 

Bitcoin breaks through $62,000 barrier

Yan’s warning tweets arrived as Bitcoin broke above $62,000 for the time since late 2021. BTC gained over 9% in 24 hours, achieving a 28-month high weeks before the halving event. 

The general sentiment backs spot BTC ETF demand as the primary driver behind Bitcoin’s price increase. According to SoSoValue, spot BTC ETFs saw net inflows of $576 million on Feb. 27, as BlackRock’s IBIT product made a historical high of $520 million in single-day net inflows.

Over $6.5 billion has flowed into BlackRock’s spot Bitcoin ETF after trading officially opened on Jan. 11, and the Wall Street titan holds over $8 billion in BTC with Coinbase custody for its exchange-traded fund.