- Matrixport co-founder believes that the current state of the bitcoin market requires caution.
- He predicted a correction of 15% after a “difficult” March.
- The expert referred to the impact of events such as the Fed’s interest rate meeting and the decision on the BTFP program.
By the end of April 2024, the bitcoin market may experience a correction of about 15% due to a difficult March in terms of macroeconomic factors. This was stated by Daniel Yan, co-founder of Matrixport.
Euphoria: the sentiment of the market has come to a level where I think we should be cautious – might be a good idea to revisit my pinned tweet on the size of potential corrections. I think we should see another healthy ~15% correction by end-April.
- Daniel Yan (@_D_Y_A_N) February 28, 2024
“Market sentiment has reached a level where I think we need to be cautious,” the expert emphasized.
Yan highlighted two main factors that could affect the bitcoin exchange rate – the Fed’s decision on the interest rate and the issue of extending the Bank Term Funding Program (BTFP).
This initiative was launched in March 2023. The purpose of the program is to provide the necessary liquidity for financial counterparties through term loans secured by bonds.
The Fed’s refusal to extend BTFP may lead to an outflow of funds from the banking segment in favor of other markets, including cryptocurrency.
In addition, the community expects the regulator to soften its policy regarding the interest rate, although the probability of the rate reduction in March 2024 is quite low, as experts noted earlier.
Yang stated that he does not undertake to predict the price of bitcoin by the time of correction. He also believes the asset could update ATH before that drawdown.
“If you are a long-term holder, there is nothing to worry about. But when trading short positions, it is worth following March,” he emphasized.
On February 28, 2024, the bitcoin exchange rate marked three significant gains. At the moment, the price of the asset reached $60,500.
