CryptoQuant CEO: Bitcoin Sales by Governments Have Minimal Impact on the Overall Market

YEREVAN (CoinChapter.com) — Bitcoin sales by governments have minimal impact on the overall market, according to Ki Young Ju, founder and CEO of CryptoQuant.

Bitcoin sales by governments have minimal impact on the overall market, according to Ki Young Ju, founder and CEO of CryptoQuant.

On July 5, Ki shared on Medium that government BTC sell-offs are insignificant compared to the large inflows since the latest bull market began in 2023.

Ki stated,

“Government Bitcoin selling is overestimated.”

Since 2023, total inflows into the Bitcoin market have reached $224 billion. In contrast, government-seized BTC, which could be sold, amounts to about $9 billion, representing just 4% of the total realized value.

Bitcoin Realized Cap and Government Sales Data

Ki’s perspective addresses recent BTC price activities, marked by sharp spot selling due to ongoing government selling and transfers from wallets linked to the defunct exchange Mt. Gox. The primary governments involved are Germany and the United States.

Germany holds 41,200 BTC, seized from various bad actors over the years, according to crypto intelligence firm Arkham.

Ki Young Ju Advises Against Government BTC Sale Panic

The Crypto Fear & Greed Index shows sentiment is nearing “extreme fear.” Despite this, Ki highlighted,

“Don’t let govt selling FUD ruin your trades.”

He noted that the market has seen substantial inflows, and government sales are only a small fraction.

BTC Faces Key Support Levels Amid Market Volatility

Several trendlines are failing, causing concern among traders. The Supertrend floor at $52,000 is one of the closest to the current spot price. Some analysts predict a possible return to $45,000 to match historical norms.

The 200-day moving average, a common bull market support, and Bitcoin’s short-term holder cost basis are also significant. These levels are currently at $58,550 and $64,175, respectively.

BTC/USD hit four-month lows of $53,500 on July 5. By the next day, it was trading around $3,000 higher, according to TradingView. This data highlights the market’s volatility.

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