Bitcoin sales by government only 4% of $225B bull market revenue – analyst
Bitcoin traders should not act impulsively on the government's BTC sale, says a prominent analyst.
In a July 5 post on the onchain analytics platform CryptoQuant, founder and CEO Ki Young Joo downplayed the importance of the recent government installation.
K: “Don't let a government that sells FUD ruin your business.”
Bitcoin (BTC) sales by governments around the world are minuscule compared to the overall flows into the space, argues Ki Young Joo.
In contrast to the nearly $250 billion in inflows since the last bull market began, funds technically available for sale by the government total less than $10 billion.
“Government bitcoin sales are highly speculative,” Key summarized.
As of 2023, $224B has entered this market. State-owned BTC contributed about $9B to the results.
The view stands out as a level-headed reaction to BTC's recent price action, which has sold sharply on the back of continued government selling activity, in addition to transfers from wallets linked to lost currency Mt.Gox.
The two actors on the radar are Germany and the United States, with the former still holding 41,200 BTC from various bad actors.
The Crypto Fear and Greed Index shows that the sentiment is approaching “peak panic”, however, relying solely on the government shows little sentiment in such panic.
“As of 2023, the value added from the total will be only 4%,” he reckons.
“Don't let government peddling FUD ruin your business.”
BTC Price: Will It Fall Further?
As Cointelegraph continues to report, market watchers remain vigilant at key long-term support levels as various trend lines fail.
Related: Price Analysis 7/5: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
The optimal floor at $52,000 is one of the closest to the price, calculations also see the possibility of a return to $45,000, bringing the recent decline in line with historical norms.
“Classic” bull market support, meanwhile, is now higher than the position: the 200-day moving average and Bitcoin's short-term bearer price base at $58,550 and $64,175, respectively.
BTC/USD hit a four-month low of $53,500 on July 5 and is trading around $3,000 higher at the time of writing a day later, according to data from Cointelegraph Markets Pro and TradingView.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
