The post Debunking Fears: Government Bitcoin Sell-Offs Overestimated Amid $224B Market Inflow appeared on BitcoinEthereumNews.com.

The Bitcoin market has faced significant selloffs since June, primarily driven by miners, with recent contributions from the German government. These large-scale government transactions have exerted considerable selling pressure, impacting Bitcoin’s price trajectory. However, Ki Young Ju of CryptoQuant argues that government-related selloffs are overrated, citing aggregate Bitcoin inflow data. An in-depth analysis of recent Bitcoin selloffs highlights the role of government transactions and challenges the perceived impact on market trends. Government Bitcoin Selloffs: Examining the Impact Recent developments in the Bitcoin market have seen significant selloffs attributed to various whales, including governments. Notably, both the US and German governments have collectively sent approximately $737 million worth of Bitcoin to major exchanges like Coinbase, Bitstamp, and Kraken within the last two weeks. Such transactions are viewed by the market as substantial selloffs, driving selling pressure and contributing to a noticeable decline in Bitcoin prices over the past month. Ki Young Ju’s Perspective on Government Bitcoin Sales Despite prevailing concerns, Ki Young Ju, the CEO of CryptoQuant, dismisses the notion that government-linked transactions significantly disrupt the Bitcoin market. He bases his opinion on analyzing the total value of Bitcoin inflows, which indicates that government-related selloffs account for just a minor fraction. Specifically, since 2023, Bitcoin has had inflows totaling over $224 billion, with only around 4% being attributed to government-seized assets. Ju’s analytics reveal that government selloffs have marginally contributed—around $9 billion—to the realized market cap. Realized Market Cap: A New Perspective on Bitcoin’s Valuation Understanding the realized market cap offers a more nuanced valuation of Bitcoin. Unlike traditional market cap calculations that consider all outstanding coins at current prices, realized market cap values individual coins based on their last transaction price. This method provides insights into the actual fiat currency inflow into Bitcoin. Current data reveals that government-seized Bitcoin forms…

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Filed under: News - @ July 7, 2024 1:26 pm