A popular analyst says Bitcoin (BTC) traders should not act impulsively on government BTC sell-offs.
Kiyoung Joo, founder and CEO of on-chain analytics platform CryptoQuant, downplayed the importance of recent state decentralization in a July 5 post on X (formerly Twitter).
Ki: “Don’t let the government sell you FUD and ruin your trade”
The cycle claims that the amount of bitcoin sold by governments around the world is tiny compared to the overall inflow into the sector.
In contrast to the nearly $250 billion inflows since the start of the recent bull market, the government has less than $10 billion in total money it can technically sell.
Ki summarized that “government sales of Bitcoin are overrated.”
“Since 2023, $224 billion has flowed into the market. Government-seized BTC contributes approximately $9 billion to the realized cap.”
This perspective is highlighted by the recent sobering reaction to BTC price action, which has been fueled by a surge in spot selling due to ongoing government selling as well as transfers from wallets associated with the closed exchange Mt. Gox.
The two entities on the radar are Germany and the United States, with Germany still holding 41,200 BTC seized from various bad actors over the past few years, according to data from cryptocurrency intelligence firm Arkham.
The Crypto Fear and Greed Index shows sentiment is approaching “extreme fear,” but Ki sees such panic as being caused solely by governments as meaningless.
“That’s just 4% of the total cumulative value realized since 2023,” he reasoned.
“Don’t let the government ruin your deal by selling you FUD.”
BTC Price: Will It Fall Further?
As Cointelegraph reports, market experts remain wary of key long-term support levels as various trend lines break down.
Related: Price Analysis 7/5: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
The supertrend floor at $52,000 is one of the closest to the spot price, and calculations suggest that a recovery to $45,000 is likely for the recent downtrend to match historical levels.
Meanwhile, “classic” bull market support levels are well above the current spot price: the 200-day moving average and Bitcoin’s short-term cost of holding at $58,550 and $64,175, respectively.
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD hit a four-month low of $53,500 on July 5, and is trading about $3,000 higher a day after writing this article.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.