The cryptocurrency market has taken an attention-grabbing flip in the previous few days, with the value of Bitcoin enduring an intense amount of bearish pressure. On Thursday, July 4, the premier cryptocurrency broke under the $60,000 mark, falling as little as $57,000.
BTC continued its worth descent on Friday, with the market chief touring down under $54,000 in some unspecified time in the future. This disappointing worth run has been linked to numerous occasions, together with authorities selloffs and potential promoting after information of the Mt. Gox payout.
Government Bitcoin Selling Is Overestimated: CryptoQuant CEO
In a brand new put up on the X platform, CryptoQuant CEO and founder Ki Young Ju has weighed in on the latest stories of countries’ governments offloading seized BTC property. Most notably, the German government has been executing numerous transactions involving vital quantities of Bitcoin in latest weeks.
The FUD (worry, uncertainty, and doubt) from the latest selloffs is believed to be one of many main drivers of the present downward stress on the Bitcoin worth. However, the CryptoQuant CEO believes that the impression of the government selling seized BTC property is being over-inflated.
This analysis relies on the realized cap of Bitcoin in a couple of 12 months. According to CryptoQuant knowledge, $224 billion has moved into the market since 2023, however solely $9 billion (lower than 5%) is from government-seized BTC. It is value noting, although, that this knowledge solely accounts for Bitcoin seized by the United States and German governments.
Source: Ki Young Ju/X
Young Ju famous in his put up that the realized cap right here represents the overall capital that has flowed into the market since 2023. The “realized” cap differs from the extra conventional “market” cap in that it’s based mostly on the value of every coin when it final moved.
In a separate post on X, the founder reiterated religion within the long-term promise of the premier cryptocurrency, stating that the Bitcoin bull cycle shouldn’t be over but. According to the blockchain agency CEO, the bull run will probably proceed till early subsequent 12 months.
What’s extra, Young Ju was in a position to pinpoint the potential high of the Bitcoin cycle utilizing the realized cap metric. The CryptoQuant founder expects the premier cryptocurrency to achieve its peak on this cycle across the $112,000 worth stage.
BTC Price At A Glance
The price of Bitcoin recovered above $56,000 within the late hours of Friday, July 5, and is buying and selling at $56,400 as of this writing. Nevertheless, the market chief continues to be down by almost 6% within the final seven days.
BTC worth at $56,401 on the every day timeframe | Source: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
