Bitcoin Sales by Governments Don’t Have Much Impact, According to Crypto Analyst
Recent declines in the crypto market have sparked discussions among traders about the impact of government sell-offs on the price of Bitcoin.
On July 5, popular online analyst Ki Yong Ju, founder and CEO of CryptoQuant, addressed these concerns by suggesting that the impact of government sell-offs of Bitcoin on the market is overblown.
In a post on X, he urged traders to avoid being influenced by the “FUD” (fear, uncertainty, doubt) surrounding government sell-offs of BTC .
He stressed that while recent actions by Germany and the UK have attracted attention, the scale of these transactions is minimal compared to overall market activity.
ПРОЧЕТИ ОЩЕ:
Crypto Analyst Forecasts Bitcoin Breakout Before Year-EndKi stressed that since the start of the last 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 Germany, stands at less than $10 billion:
“Government sales of Bitcoin are overvalued,” he said
Ki’s analysis offers a calm outlook amid recent market fluctuations that have been influenced by both government sell-offs and transfers from portfolios linked to the now-defunct Mt. Gox exchange.
Despite a noticeable increase in fear among traders, as evidenced by the fear and greed index approaching “extreme fear,” Key argues that this anxiety is misplaced.
“It [represents] only 4% of the total cumulative value realized since 2023,” he explained.
Govt #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 Yong Ju’s comments suggest that while government actions are a factor, they should not lead to impulsive trading decisions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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