Bitrabo Editorial
In the Bitcoin market, large selloffs have been observed since June, mostly by miners and a few whales. Recently, reports have emerged about the German government also selling its Bitcoin holdings.
Selling actions by governments in the crypto space are considered significant due to their scale, often categorized as whale movements. These sales can impact selling pressure and the price of Bitcoin.
Government Bitcoin Sales Not as Signficant as Perceived
Despite concerns, Ki Young Ju, CEO of CryptoQuant, believes that reactions to government selloffs are overstated. He points out that the total value of Bitcoin inflows over the past year contradicts these concerns.
Addresses linked to the US and German governments have transferred over $737 million worth of Bitcoin to exchanges recently, potentially adding to selling pressure during a price decline.
While news of “governments dumping Bitcoin” can create fear and doubt, the actual impact may not be as profound. Government Bitcoin sell-offs, while real, are relatively small when considering the broader market. Data suggests that seized government BTC makes up only a fraction of the overall market capitalization.
Data shared by CryptoQuant indicates that government-seized Bitcoin constitutes a mere portion of the overall market value, demonstrating that these holdings do not exert significant influence compared to the vast market liquidity.
Current Status of Bitcoin
Currently, Bitcoin is trading at $57,360, showing signs of recovery after recent losses. The recent corrections have been notable, with the cryptocurrency experiencing its most substantial decline since the 2022 bull run. Bitcoin still faces challenges and must surpass the $60,000 mark to resume its upward trajectory.
Featured image from Getty Images, chart from TradingView