In a warning that was released this week, Daniel Yan, co-founder of Matrixport, stated that the Bitcoin market is exhibiting signs of excitement and overheating, indicating that a correction of approximately fifteen percent may take place in the coming weeks.
The comments made by Yan come at a time when the price of Bitcoin has surpassed $64,000 for the first time since 2021, which has caused investors to work themselves into a frenzy.
Additionally, the Crypto Fear & Greed Index appears to have a score of 85, which indicates that the market is extremely greedy.
Following the approval of numerous spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission in January, this rise has occurred.
Yan describes the month of March as being "tricky" from the point of view of the macroeconomic system. Some of the upcoming events, such as a meeting of the Federal Reserve, the halving of Bitcoin, and the update of Ethereum's Dencun, have the potential to introduce uncertainty and volatility into the market.
As is the case with other analysts, such as Arthur Hayes, who is also the co-founder of BitMEX, the outlook is similarly cautious.
As a result of global macroeconomic and political uncertainties, Hayes forecasts that the price of Bitcoin could continue to fall below $35,000.
n the following months, assets such as cryptocurrencies may be severely impacted by factors such as the actions of the Federal Reserve, inflation, and the presidential election in the United States in 2024.
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