Bitcoin

when

The Bitcoin market has been riddled with <a href="https://bitcoinist.com/bitcoin-whales-sold-1-8-billion-btc-past-month-data/" target="_blank" rel="noopener ">several whale selloffs</a> since June. The majority of these selloffs have emerged from miners and a few other whales, although recent news has emerged that the <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-selloff-german-govt-another-67-million/" target="_blank" rel="noopener nofollow">German government</a> is also selling off its holdings. 
Due to the enormous scale of the transactions, <a href="https://www.newsbtc.com/bitcoin-news/german-parliament-member-urges-government-to-cease-selling-bitcoin/" target="_blank" rel="noopener nofollow">selloffs by the government</a> can be classified as whale movements. Many market participants can also argue that they’ve contributed to an<a href="https://www.newsbtc.com/news/bitcoin/bitcoin-further-crash-to-47000/" target="_blank" rel="noopener nofollow"> increase in selling pressure</a> and a price decline for Bitcoin.&nbsp; 
However, Ki Young Ju, founder and CEO of CryptoQuant, doesn’t resonate with this school of thought. According to him, reactions to selloffs from wallets linked to governments are mostly overrated. Interestingly, his take is based on the cumulative value of Bitcoin inflows in the past year. 
<h2 id="b-government-selling-bitcoin-is-overrated-b">Government Selling Bitcoin Is Overrated</h2> 
Addresses linked to the US and German governments have collectively sent over $737 million worth of Bitcoin to crypto exchanges Coinbase, Bitstamp, and Kraken in the past two weeks. These transfers, by their nature, can be nothing more than selloffs at the exchanges. 
Particularly noteworthy is the fact that these transfers have occurred in the midst of a month-long decline in the price of Bitcoin, which has contributed more to the selling pressure.&nbsp;&nbsp; 
However, while headlines about “governments dumping Bitcoin” might spark fear, uncertainty, and doubt (FUD) in the crypto community, the issue is really not that deep. While it’s true that the governments have liquidated a portion of their Bitcoin investments, the sell-off wasn’t actually that huge in the grand scheme of things.&nbsp; 
<img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/1ILmO8TH/" width="1835" height="883"> 
According to CryptoQuant data shared by Ki Young Ju, Bitcoin has received inflows of over $224 billion since 2023, with only 4% of these being linked to assets seized by governments. Furthermore, the data shows that government-seized BTC has contributed about $9 billion to the realized market cap since 2023. 
<blockquote class="twitter-tweet"> 
 Govt <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#Bitcoin</a> 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. <a href="https://t.co/12fy2sKsXH" rel="nofollow" target="_blank">pic.twitter.com/12fy2sKsXH</a> 
 — Ki Young Ju (@ki_young_ju) <a href="https://twitter.com/ki_young_ju/status/1809293501084909592?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">July 5, 2024</a>
</blockquote> 
Going by this realized market cap data, it is obvious that government-owned Bitcoins do not really have much power and are minuscule compared to the funds available in the market. Realized market cap is a unique way of looking at Bitcoin’s true valuation. It takes into account the last price when each BTC last moved from its current position. This gives a more accurate picture of how much fiat currency has really flowed into BTC. 
<h2 id="b-current-state-of-bitcoin-b">Current State Of Bitcoin</h2> 
At the time of writing, Bitcoin is trading at $57,360 and is starting to recoup some of its seven-day losses. Recent corrections have seen the crypto <a href="https://x.com/PeterLBrandt/status/1809652239851507841" target="_blank" rel="noopener nofollow">fall by the largest magnitude</a> since the bull cycle began at the 2022 low. The crypto is<a href="https://www.newsbtc.com/bitcoin-news/bitcoin-reclaims-56k-but-still-faces-potential-drop-to-47k/" target="_blank" rel="noopener nofollow"> not out of the woods</a> yet. The bulls must keep pushing the price into the $60,000 territory before Bitcoin can <a href="https://www.newsbtc.com/news/market-expert-predicts-when-bitcoin-price-will-reach-its-cycle-highs/" target="_blank" rel="noopener nofollow">resume its upward trend</a>.&nbsp;&nbsp; 
Featured image from Getty Images, chart from TradingView

Why The US And German Government Selling Bitcoin Isn’t A Big Deal

Innholdsfortegnelse

Bitcoinist

Andre artikler publisert på 7. juli 2024

Invest Smart: The Best Altcoins for 200% Returns in 2024

Former Goldman Analyst Critiques XRP and Cardano: Nothing Other Than Cult Memecoins

Ethereum, Solana, and Binance Coin Investors Flock to Bitgert: What’s Driving the Shift?

From Under $2 to $25: 4 Coins with Potential Growth in 2024 That Could Provide Significant Return...

Bitcoin decouples from stocks: Was Germany’s BTC sale the trigger?

Qubetics Whitelist Rolls Out Exclusive Access as Aptos and Celestia Face Scrutiny

Bli med på vårt gratis nyhetsbrev for daglige kryptooppdateringer!