- Bitcoin’s recent decline to below $60,000 was influenced by government sales and the anticipated Mt. Gox payout.
- CryptoQuant CEO asserts the effect of government Bitcoin sales on market prices is exaggerated, citing specific data analysis.
In recent days, Bitcoin has experienced a sharp decline, breaking below the $60,000 mark and reaching lows around $57,000. This downward trend persisted into Friday, with Bitcoin’s value dipping below $54,000 at times.
Govt #Bitcoin selling is overestimated.
$224B has flowed into this market since 2023. Government-seized BTC contributes about $9B to the realized cap.
It's only 4% of the total cumulative realized value since 2023. Don't let govt selling FUD ruin your trades. pic.twitter.com/12fy2sKsXH
— Ki Young Ju (@ki_young_ju) July 5, 2024
These reductions in price have been attributed to a variety of factors, including government liquidations of seized assets and market reactions to the anticipated Mt. Gox payouts.
I believe the #Bitcoin bull cycle will continue until early next year.
For those trading in spot, it would be wise to DCA while keeping in mind that it could drop to $47K from here.
If you are not an experienced futures trader, do not open high-leverage long or short positions…
— Ki Young Ju (@ki_young_ju) July 5, 2024
Ki Young Ju, CEO of CryptoQuant, has commented on the situation through a post on X platform, addressing the widespread speculation about government influence on Bitcoin’s price. He contends that the impact of government sell-offs, particularly by the German government, is exaggerated within the community.
For those trading in spot, it would be wise to DCA while keeping in mind that it could drop to $47K from here.
If you are not an experienced futures trader, do not open high-leverage long or short positions based on my tweets.
CryptoQuant’s analysis reveals that while $224 billion has entered the Bitcoin market since 2023, only about $9 billion—less than 5%—comes from Bitcoin seized by the U.S. and German governments. This data suggests that the actual influence of these government actions on the market is relatively minor.
Ju also discussed the “realized” cap metric, a valuation method that calculates the market cap based on the prices at which each coin was last moved, rather than the current market prices. This metric provides a more granular view of the inflows into the Bitcoin market.
$112K at the peak of the cycle.https://t.co/beKpUVkNXL pic.twitter.com/Esj02BYms4
— Ki Young Ju (@ki_young_ju) July 5, 2024
Despite the recent market downturn, Ju remains optimistic about Bitcoin’s future, projecting that the bull run will continue until early next year. He predicts that Bitcoin could reach as high as $112,000 during this period.
As of late Friday, Bitcoin’s price had slightly recovered, trading at about $56,400, although it still shows a nearly 6% decline over the past week. This recovery, while modest, underscores the ongoing resilience of Bitcoin in the face of market volatility and shifting economic indicators.
