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.

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Ki 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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.