Bitcoin traders are urged to resist knee-jerk reactions to government sell-offs of BTC, as highlighted by a prominent analyst.
In a recent update posted on X on July 5, Ki Young Ju, the founder and CEO of CryptoQuant, an onchain analytics platform, downplayed the impact of recent state-driven sales. Ki emphasized, “Don’t let government selling FUD affect your trading decisions.”
Ki argued that despite governments worldwide selling Bitcoin, the total amount involved is negligible compared to the overall inflows into the cryptocurrency space. Since the latest bull market began, inflows have surpassed $250 billion, whereas the potential government sales amount to less than $10 billion.
“The perceived impact of government Bitcoin sales is overstated,” summarized Ki.
Ki’s perspective offers a measured response to recent Bitcoin price movements, which have seen significant spot selling amid ongoing government dispositions and transfers from wallets associated with the now-defunct Mt. Gox exchange.
Germany and the United States are prominently featured in this context, with Germany still holding 41,200 BTC confiscated from various illicit sources over the years, according to data from crypto intelligence firm Arkham.
Despite the Crypto Fear and Greed Index indicating approaching “extreme fear,” Ki remains unconvinced about panic solely driven by government actions.
“It constitutes only 4% of the total cumulative realized value since 2023,” reasoned Ki.
Regarding Bitcoin’s price outlook, ongoing scrutiny remains on critical long-term support levels amidst recent trendline breaches, as reported by Cointelegraph.
The $52,000 supertrend support level is closely watched, with market analysis suggesting a potential decline to $45,000 to align with historical patterns. Notably, traditional bullish support levels such as the 200-day moving average and Bitcoin’s short-term holder cost bases stand significantly higher, at $58,550 and $64,175, respectively.
On July 5, BTC/USD touched its lowest point in four months at $53,500, with subsequent trading indicating a modest recovery to around $56,500 at the time of writing on the following day, according to data from Cointelegraph Markets Pro and TradingView.
This article refrains from providing investment advice. All trading and investment decisions carry inherent risks, and readers are encouraged to conduct their own research before making any decisions.