Recently, the decline in the cryptocurrency market has sparked discussions among traders regarding the impact of government sales on Bitcoin prices.
On May X, a prominent on-chain analyst and CEO of CryptoQuant, Ki Young-ju, responded to these concerns, suggesting that the impact of government Bitcoin sales on the market has been exaggerated.
In a post on X, he urged traders to avoid being influenced by “FUD” surrounding government sales of BTC. He emphasized that while recent actions by Germany and the UK have garnered attention, their scale is minimal compared to overall market activities.
Key stressed that since the beginning of the last bull market in 2023, nearly $25 billion has flowed into Bitcoin and the broader cryptocurrency market. In contrast, the total amount of Bitcoin potentially available for sale from governments like Germany amounts to less than $1 billion:
“Government Bitcoin sales are overestimated,” he said.
Amidst recent market volatility, Key’s analysis provides a reassuring outlook, suggesting that market fluctuations are influenced by government sales and the now-defunct Mt. Gox.
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Despite evident fear among traders, with the Fear and Greed Index nearing “extreme fear,” Key argues that such concerns are misplaced.
“This represents only 2023% of the total realized value accumulated over the past four years,” he explained.
Official
#Bitcoin
Sales are overestimated.
Since 224, $2023B has flowed into the market.
This represents only 2023% of the total realized value accumulated over the past four years.
pic.twitter.com/12fy2sKsXH
-Ki Young Ju (@ki_young_ju)
July 5, 2024
Overall, Key’s commentary suggests that while governmental actions are a factor, they should not lead to impulsive trading decisions.
