CryptoQuant CEO: Government Bitcoin Sales May Not Be as Significant as Previously Thought

Bitcoin ETF inflows surge, with Fidelity ETF leading $117 million investments. Realized cap shows stronger support for Bitcoin prices than traditional market cap.

CryptoQuant CEO downplays impact of government Bitcoin sales

Recent government sales of large amounts of bitcoin have put pressure on the cryptocurrency’s price, sparking concern among some crypto investors.

However, CryptoQuant CEO Ki Young Ju argues that the impact of these sales may not be as significant as البعض thought.

In a tweet on July 6, Ju highlighted the large amount of capital that has flowed into the bitcoin market in 2023. According to his analysis, around $224 billion has entered the market, while government-seized bitcoin contributes about $9 billion to the realized cap in this period.

“Government bitcoin selling is overestimated,” Ju wrote. “$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.”

The realized cap is calculated based on the last price at which each bitcoin moved, as opposed to the traditional market cap, which multiplies bitcoin’s current price by its total supply. It reflects the total value of on-chain trades, which Ju describes as a “graveyard of exit liquidity victims.”

“The realized cap shows stronger support for bitcoin prices than the traditional market cap,” Ju added. “It’s the capital that is realized as profits are realized and trades are executed. A higher realized cap shows stronger fundamental support for asset prices, especially in speculative markets like bitcoin.”

While government bitcoin sales may still have some تأثير on the market, Ju’s analysis suggests that the broader trend of capital inflows is providing significant support for bitcoin prices, especially in the second half of 2023.

This influx of capital may help stabilize the market during periods of volatility and contribute to sustained price appreciation over the long term.

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