Bitcoin sales by gov’ts just 4% of $225B bull market inflows — Analyst
2024.07.06 04:33
Bitcoin (BTC) traders should not act on impulse over government BTC sell-offs, a popular analyst says.
In a post on X (formerly Twitter) on July 5, Ki Young Ju, founder and CEO of on-chain analytics platform CryptoQuant, played down the significance of recent state offloading.
Ki: “Don’t let gov’t selling FUD ruin your trades”
Bitcoin being sold by governments around the world is minimal compared to overall inflows to the space, Ki Young Ju argues.
In contrast to the nearly $250 billion of inflows since the latest bull market began, funds that could technically end up for sale by governments total less than $10 billion.
“Govt Bitcoin selling is overestimated,” Ki summarized.
“$224B has flowed into this market since 2023. Government-seized BTC contributes about $9B to the realized cap.”
Bitcoin realized cap with gov’t sales data. Source: Ki Young Ju/X
The perspective stands out as a level-headed reaction to recent BTC price activity, which has been marked by sharp spot selling on the back of continued government selling activity in addition to transfers from wallets linked to defunct exchange Mt. Gox.
The two actors on the radar are Germany and the United States, with the former still holding 41,200 BTC seized from various bad actors over the years, per data from crypto intelligence firm Arkham.
Source: Arkham
While the Crypto Fear & Greed Index shows sentiment is nearing “extreme fear,” Ki, however, sees little sense in such panic based on governments alone.
“It’s only 4% of the total cumulative realized value since 2023,” he reasoned.
“Don’t let govt selling FUD ruin your trades.”
Crypto Fear & Greed Index (screenshot). Source: Alternative.me
BTC price: Further to fall?
As Cointelegraph continues to report, market observers remain vigilant over key long-term support levels as various trendlines fail.
Related: Price analysis 7/5: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
The Supertrend floor at $52,000 is among those closest to spot price, with calculations also seeing the chance of a return to $45,000 to bring the latest drawdown in line with historical norms.
“Classic” bull market support, meanwhile, now lies high above spot: the 200-day moving average along with Bitcoin’s short-term holder cost basis at $58,550 and $64,175, respectively.
BTC/USD hit four-month lows of $53,500 on July 5, trading around $3,000 higher at the time of writing a day later, per data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-day chart. Source: TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
