Recently, the downturn in the cryptocurrency market has sparked discussions among traders regarding the impact of government sales on Bitcoin prices.
On July 5, popular on-chain analyst Ki Young Ju, founder and CEO of CryptoQuant, addressed these concerns, suggesting that the influence of government Bitcoin sales on the market is exaggerated.
In a post on X, he urged traders to avoid being influenced by “FUD” (fear, uncertainty, doubt) surrounding government sales of BTC. He emphasized that while recent actions by Germany and England have garnered attention, the scale of these transactions is minimal compared to overall market activity.
Ki highlighted that since the beginning of the latest bull market in 2023, nearly $250 billion has flowed into Bitcoin and the broader crypto market. In contrast, the total amount of Bitcoin potentially available for sale from government seizures, such as in Germany, amounts to less than $10 billion:
“Government sales of Bitcoin are overestimated,” he stated.
Ki’s analysis offers a calm perspective amidst recent market fluctuations influenced by both government sales and transfers from wallets associated with the now-defunct Mt. Gox exchange.
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Despite noticeable increases in fear among traders, as evidenced by the Fear and Greed Index approaching “extreme fear,” Ki argues that this anxiety is misplaced.
“This [represents] only 4% of the total cumulative realized value since 2023,” he explained.
Official #Bitcoin selling is overestimated.
$224B has flowed into this market since 2023. Government-seized BTC contributes about $9B to the realized cap.
It’s only 4% of the total cumulative realized value since 2023. Don’t let govt selling FUD ruin your trades.
pic.twitter.com/12fy2sKsXH
-Ki Young Ju (@ki_young_ju)
July 5, 2024
Overall, Ki Young Ju’s comments suggest that while government actions are a factor, they should not lead to impulsive trading decisions.
