Bitcoin Data Analysis: CEO Analyzes Impact of Recent Government Sales

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The cryptocurrency market has taken an captivating turn over the past few days, with the price of Bitcoin enduring intense bearish pressure. On Thursday, July 4, the major cryptocurrency fell below $60,000, falling to $57,000.

BTC continued its price decline on Friday, with the market leader at one point dipping below $54,000. This disappointing price run has been linked to a variety of events, including government sell-offs and potential selling following the Mt. Gox withdrawal news.

Government Bitcoin Sale Is Overpriced: CryptoQuant CEO

In a fresh post on the X platform, CryptoQuant CEO and founder Ki Newborn Ju addressed recent reports of governments selling seized BTC assets. Most notably, the German government has been conducting various transactions involving significant amounts of Bitcoin in recent weeks.

FUD (fear, uncertainty and doubt) from the recent sell-off is believed to be one of the main factors behind the current downward pressure on Bitcoin’s price. However, CryptoQuant’s CEO believes that the impact government sells confiscated BTC assets are overstated.

This estimate is based on Bitcoin’s realized cap over the course of about a year. According to CryptoQuant’s data, $224 billion has entered the market since 2023, but only $9 billion (less than 5%) comes from government-seized BTC. It’s worth noting, however, that this data only includes Bitcoin seized by the US and German governments.

Source: Ki Newborn Ju/X

Newborn Ju noted in his post that the realized capital here represents the total capital that has flowed into the market since 2023. “Realized” capital differs from the more classic “market” capital in that it is based on the price of each coin at the time of its last move.

In a separate write to Xfounder reiterated his belief in the long-term promise of the leading cryptocurrency, stating that Bitcoin’s bull cycle is not over yet. According to the blockchain company’s CEO, the bull run will likely last until early next year.

Furthermore, Newborn Ju was able to pinpoint a potential Bitcoin cycle peak using the realized cap metric. The CryptoQuant founder expects the leading cryptocurrency to peak in this cycle around the $112,000 price level.

BTC price in brief

Bitcoin price rebounded above $56,000 slow Friday evening, July 5, and is trading at $56,400 at the time of writing. However, the market leader is still down almost 6% over the past seven days.

Bitcoin
BTC price at $56,401 on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured image from iStock, chart from TradingView

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