News View Non-AMP

Government Bitcoin Sell-Off Won’t Shake Crypto Market Say CryptoQuant’s CEO

Published by
Mustafa Mulla

Recent, selling of sized bitcoin by the German government has exerted selling pressure that triggered panic among crypto investors. This move has somewhat resulted in Bitcoin’s price dropping by 4.3% in the past day and over 6.63% in the past week, pushing it below the $54,000 mark. 

Perhaps, CryptoQuant CEO Ki Young Ju suggests that government Bitcoin sales may not have as significant an impact on the market as previously thought.

Minimal Impact Of Government Selling BTC

According to Ki Young Ju, around $224 billion has flowed into the Bitcoin market since early 2023. In comparison, government-seized Bitcoin amounts to about $9 billion, accounting for only 4% of the total realized cap in this period. This challenges the idea that government-held Bitcoin significantly impacts market liquidity.

Meanwhile, Ju highlights the importance of the realized cap, which differs from the traditional market cap. While market cap multiplies Bitcoin’s current price by its total supply, the realized cap is calculated based on the last price at which each Bitcoin moved. 

However, the realized cap, according to Ju, reflects the total value of on-chain trades, often described as a “graveyard of exit liquidity victims.”  It reflects the capital accumulated as profits are realized and trades are executed. A higher realized cap suggests stronger fundamental support for asset prices, particularly in speculative markets like Bitcoin.

Bitcoin ETF Inflows Surge

CryptoQuant’s CEO suggests that despite worries over government Bitcoin sales, the market continues to be strong with substantial new capital flowing in. This influx of capital supports Bitcoin prices, which could help stabilize the market during periods of volatility.

Recently SpotOnChain, a popular analytics firm, reported that Bitcoin ETFs saw net inflows exceeding $143 million on July 5.

According to their data, Grayscale’s ETF (GBTC) experienced outflows of $28 million on the same day. The Fidelity ETF (FBTC) led with $117 million in investments, followed by the Bitwise Bitcoin ETF (BITB) with $30 million in inflows. However, certain exchange-traded funds recorded zero flows during this period.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Was Jed McCaleb’s Exit from Ripple a ‘Breakup’ or a Brilliant Strategy? Find Out!

Jed McCaleb’s departure from Ripple in 2014 has long been the subject of speculation. Many…

April 27, 2025

Pi Network: Why Dr Altcoin Strongly Believes in Its Future – Key Reason Behind It

While many people are still trying to figure out the next big thing in crypto,…

April 27, 2025

Binance Coin Price Prediction 2025, 2026 – 2030: Will BNB Hit $1000?

Story Highlights Binance Coin Price Today is . The BNB price prediction anticipates a potential…

April 27, 2025

Dogecoin Price Prediction 2025, 2026 – 2030: Will DOGE Price Hit $1?

Story Highlights The price of Dogecoin today is . Dogecoin price may reach a maximum…

April 27, 2025

Cardano Price Prediction 2025, 2026 – 2030: Will ADA Price Hit $2?

Story Highlights The live price of the Cardano token is . ADA coin price could…

April 27, 2025

Nike Hit With $5M Lawsuit as NFT Buyers Lose Big After RTFKT Shutdown

Nike is facing a new lawsuit from NFT buyers who claim they lost money after…

April 26, 2025