The volume of Bitcoin (BTC) sold by governments is a minor fraction of the current bull market’s total inflows, according to CryptoQuant’s Ki Young Ju.
Bitcoin traders should not react impulsively to government BTC sell-offs, says a well-known analyst.
On July 5, Ki Young Ju, founder and CEO of the on-chain analytics platform CryptoQuant, shared his views on X (formerly Twitter), downplaying the impact of recent government Bitcoin sales.
Ki: “Don’t let government selling FUD ruin your trades”
Ki Young Ju argues that the amount of Bitcoin sold by governments is negligible compared to the overall inflows into the market.
Since the latest bull market began, nearly $250 billion has flowed into the space, while the Bitcoin funds potentially available for sale by governments amount to less than $10 billion.
“Government Bitcoin selling is overestimated,” Ki summarized. “$224 billion has flowed into this market since 2023. Government-seized BTC contributes about $9 billion to the realized cap.”
Ki’s perspective provides a balanced reaction to recent Bitcoin price activity, which has seen sharp declines due to continued government sales and transfers from wallets linked to the defunct exchange Mt. Gox.
Germany and the United States are two key players in this scenario. Germany holds 41,200 BTC seized from various bad actors over the years, according to data from crypto intelligence firm Arkham.
Despite the Crypto Fear & Greed Index nearing “extreme fear,” Ki believes there’s no need for panic based on government actions alone.
“It’s only 4% of the total cumulative realized value since 2023,” he reasoned. “Don’t let government selling FUD ruin your trades.”
Summary Review: While government Bitcoin sales might sound alarming, they constitute only a small portion of the market’s total inflows. According to Ki Young Ju, traders should maintain perspective and not let fear, uncertainty, and doubt (FUD) drive their trading decisions.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
