Should you be concerned about BTC sell-offs by the Government? Ki Young Ju, CEO of on-chain analytics platform CryptoQuant – not at all.
The analyst urges Bitcoin traders to maintain composure in the face of recent government sell-offs.
In a post on X on July 5, Ju downplayed the significance of these sales, highlighting their minimal impact compared to the overall market.
Ju emphasizes the vast difference between government holdings and total market inflows. Since the start of the current bull market, inflows have reached nearly $250 billion, dwarfing the estimated $10 billion in government-held Bitcoin that could potentially be sold. “Government Bitcoin selling is overestimated,” Ju succinctly stated.
“$224B has flowed into this market since 2023. Government-seized BTC contributes about $9B to the realized cap.”
This perspective offers a welcome counterpoint to the recent fear surrounding Bitcoin price fluctuations. The market has witnessed sharp drops attributed to government sell-offs and Mt. Gox wallet movements.
Germany and the United States are the primary actors in question, with Germany reportedly holding over 41,000 BTC seized from illegal activities, according to data from Arkham Intelligence.
Despite the “extreme fear” sentiment reflected by the Crypto Fear & Greed Index, Ju remains unconvinced by panic solely based on government actions. He argues that these sales represent a mere “4% of the total cumulative realized value since 2023,” a statistically insignificant amount in the grand scheme of the market.
Moreover, Market observers are closely monitoring Bitcoin’s price action as various technical indicators fail. Key long-term support levels are being scrutinized to gauge potential price movements.
One notable support level is the Supertrend floor at $52,000. This level is currently the closest support to the spot price. Additionally, some analysts predict a possible drop to $45,000, which would align with historical drawdowns.
However, traditional bull market support metrics remain significantly higher. These include the 200-day moving average and the short-term holder cost basis, which are currently sitting at $58,550 and $64,175 respectively.
