Bitcoin

Impact

In a recent commentary on X, dated July 5, <a href="https://www.coindesk.com/tag/ki-young-ju/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Ki Young Ju</a>, the CEO of onchain analytics firm CryptoQuant, addressed the concerns surrounding government sell-offs of Bitcoin (BTC).
He emphasized the relatively minor impact of these sell-offs on the overall market, advising traders not to react impulsively to such events.
Ki stated, “Don’t let government selling FUD ruin your trades.”
He highlighted that the amount of Bitcoin being offloaded by governments globally is insignificant when compared to the massive inflows the cryptocurrency market has experienced.
Since the onset of the latest bull market, the crypto space has seen nearly $250 billion in inflows, whereas the total potential government sales of BTC amount to less than $10 billion.
Ki further explained, “Govt Bitcoin selling is overestimated,” adding, “$224B has flowed into this market since 2023. Government-seized BTC contributes about $9B to the realized cap.”
This perspective offers a calm contrast to the recent volatile price movements in BTC, which have been influenced by government actions and the ongoing transfers from accounts associated with the defunct exchange Mt. Gox.
READ MORE: <a href="https://www.cryptointelligence.co.uk/bitcoin-drops-over-2-on-july-4-as-key-support-line-faces-retest-since-october-2023/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Drops Over 2% on July 4 as Key Support Line Faces Retest Since October 2023</a>
The primary sellers in focus are Germany and the United States, with Germany holding approximately 41,200 BTC confiscated from criminal activities, as reported by Arkham, a crypto intelligence agency.
Despite the prevailing nervous market sentiment, as indicated by the Crypto Fear and Greed Index nearing “extreme fear,” Ki believes the panic induced by government actions alone is disproportionate.
He reasoned, “It’s only 4% of the total cumulative realized value since 2023,” reinforcing his earlier statement, “Don’t let govt selling FUD ruin your trades.”
As the market continues to monitor critical support levels, the narrative remains cautious but observant of potential rebounds.
Current evaluations place the supertrend floor at $52,000, with potential scenarios predicting a dip to $45,000, aligning the current downturn with historical trends.
Moreover, established bull market supports such as the 200-day moving average and Bitcoin’s short-term holder cost basis are currently pegged at $58,550 and $64,175, respectively.
On a related note, Bitcoin hit a four-month low of $53,500 on July 5 but saw a modest recovery, trading approximately $3,000 higher the following day, according to data from Cointelegraph Markets Pro and TradingView.
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Analyst Urges Calm Amid Government Bitcoin Sell-Offs, Highlights Minimal Market Impact

Crypto Intelligence

Artikel lain yang dipublikasikan pada 7 Jul 2024

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