Daniel Yan states: greed has overcome fear, its index has reached a new critical level of 80%. According to a crypto expert, “extreme greed” warns of an imminent market correction, despite liquidity injections into Bitcoin ETFs and the price of the flagship cryptocurrency rising to $62,000.
Citing macroeconomic uncertainty in March, Daniel Yang suggests there could be a market correction of around 15% by the end of April.
Euphoria: the sentiment of the market has come to a level where I think we should be cautious – may 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
Daniel Yang does not see any other significant fundamental prerequisites for such a rapid increase in the value of Bitcoin, except for a large speculative component. The expert believes that the global macroeconomic landscape plays a decisive role in the formation of investment requests, where the influence of the US Federal Reserve on the financial market through the Bank Term Funding Program (BTFP) is only increasing. This leaves potential investors with a difficult choice: whether to choose long-term investments, such as liquid US Treasuries, or highly volatile digital assets with an uncertain future.
The day before, the analytical portal CoinMarketCap provided data that the capitalization of the cryptocurrency market exceeded $2.1 trillion and reached the levels of April 2021. Over the past 24 hours, the growth in capitalization of the cryptocurrency market continued and approached $2.3 trillion.