The cryptocurrency market has taken an interesting turn in recent days, with the bitcoin price enduring intense bearish pressure. On Thursday, July 4, the leading cryptocurrency broke the $60,000 mark and fell to $57,000.
The btc price continued to decline on Friday, with the market leader dipping below $54,000 at one point. This disappointing price drop has been linked to several events, including government liquidations and potential selling following the Mt. Gox payment news.
CryptoQuant CEO says government bitcoin sales are overhyped
In a new post on the x platform, CryptoQuant CEO and founder Ki Young Ju has weighed in on recent reports of governments in countries getting rid of confiscated btc assets. In particular, the German government has been executing several transactions involving significant amounts of bitcoin in recent weeks.
FUD (fear, uncertainty, and doubt) from the recent sell-offs is believed to be one of the main drivers of the current downward pressure on the bitcoin price. However, CryptoQuant CEO believes that the impact of the bitcoin/bitcoin-selloff-german-govt-another-67-million/” target=”_blank” rel=”noopener nofollow”>Government sells confiscated btc Assets are overinflated.
This assessment is based on the limit reached by bitcoin in about a year. According to CryptoQuant data, $224 billion has entered the market since 2023, but only $9 billion (less than 5%) of that came from government-seized btc. However, it is worth noting that this data only takes into account bitcoin seized by the US and German governments.
<img decoding="async" class="aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/07/Analyzing-Bitcoin-Data-CEO-Analyzes-Impact-of-Recent-Government-Sell-Offs.jpeg" alt="bitcoin” width=”1200″ height=”675″/>
Source: x.com/ki_young_ju/status/1809293501084909592" target="_blank" rel="noopener nofollow">Ki Young Ju/x
Young Ju noted in his post that the realized cap here represents the total capital that has flowed into the market since 2023. The “realized” cap differs from the more traditional “market” cap in that it is based on the price of each coin when it last moved.
In one part x.com/ki_young_ju/status/1809254974443954403″ target=”_blank” rel=”noopener nofollow”>Post on xThe founder reiterated his faith in the long-term promise of the leading cryptocurrency and claimed that bitcoin’s bull cycle is not over yet. According to the blockchain firm’s CEO, the uptrend is likely to continue into early next year.
Additionally, Young Ju was able to accurately determine the potential peak of the bitcoin cycle using the realized capitalization metric. The CryptoQuant founder expects the leading cryptocurrency to peak in this cycle around the $112,000 price level.
btc price at a glance
bitcoin price recovered above $56,000 in the late hours of Friday, July 5, and at the time of writing, is trading at $56,400. However, the market leader is still down nearly 6% over the past seven days.
btc price at $56,401 on the daily timeframe | Source: BTCUSDT chart on x/HXtOGZzE/" target="_blank" rel="noopener nofollow">TradingView
Featured image from iStock, chart from TradingView
