The recent downturn in the cryptocurrency market has sparked discussions among traders about the impact of government sales on Bitcoin prices. On July 5th, Ki Young Ju, the popular on-chain analyst and CEO of CryptoQuant, addressed these concerns, suggesting that the influence of government Bitcoin sales on the market is overstated.
In a post on X, he urged traders to avoid being swayed by “FUD” (fear, uncertainty, doubt) surrounding government BTC sales. He emphasized that while recent actions by Germany and England have drawn attention, the scale of these transactions is minimal compared to overall market activity.
Ki highlighted that nearly $250 billion has flowed into Bitcoin and the broader crypto market since the start of the last bull market in 2023. In contrast, the total amount of Bitcoin potentially available for sale from government seizures, such as those in Germany, amounts to less than $10 billion:
“Government Bitcoin sales are overrated,” he stated.
Ki’s analysis offers a calm perspective against the backdrop of 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 the noticeable increase in fear among traders, as evidenced by the Fear and Greed Index approaching “extreme fear,” Ki asserts that this anxiety is unwarranted.
“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 government selling FUD ruin your trades.
-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.
