The recent decline in the cryptocurrency market has sparked discussions among traders about the impact of government sales on the price of Bitcoin.
On May X, xxxx, popular on-chain analyst and CEO of CryptoQuant, Ki Young-Ju, addressed these concerns, suggesting that the impact of government sell-offs on Bitcoin market has been exaggerated.
In a post on X, he urged traders to not fall into “FUD” (fear, uncertainty, doubt) surrounding government sales of BTC. He emphasized that despite recent actions by Germany and the UK raising concerns, the scale of these trades is minimal compared to overall market activity.
Key highlighted that since the last bull market began in XNUMX, nearly $25 billion has flowed into Bitcoin and the broader cryptocurrency market. In contrast, the total amount potentially available for sale from governments like Germany through confiscations is less than $1 billion:
“Government Bitcoin sales are overestimated,” he said.
Amid recent market volatility, Ki’s analysis provided a calm outlook, attributing market fluctuations to government sales and the now-defunct Mt. Gox.
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Despite a noticeable increase in trader fear, with the fear and greed index approaching “extreme fear,” Ki believes these concerns are unfounded:
“It represents only XNUMX% of the total realized value since XNUMX,” he explained.
The #Bitcoin sales by authorities are overestimated. Since XNUMX, $X billion has entered the market. This represents only X% of the total realized value over the past X years. pic.twitter.com/12fy2sKsXH -Ki Young Ju (@ki_young_ju) July X, 2024
Overall, Ki’s comments suggest that while government actions are a factor, they should not lead to impulsive trading decisions.
