The cryptocurrency market has taken an attention-grabbing flip in the previous couple of days, with the worth 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 sooner or later. This disappointing worth run has been linked to numerous occasions, together with authorities selloffs and potential promoting after information of the Mt. Gox payout.
Authorities Bitcoin Promoting Is Overestimated: CryptoQuant CEO
In a brand new publish on the X platform, CryptoQuant CEO and founder Ki Younger Ju has weighed in on the current reviews of countries’ governments offloading seized BTC belongings. Most notably, the German government has been executing numerous transactions involving important quantities of Bitcoin in current weeks.
The FUD (concern, uncertainty, and doubt) from the current selloffs is believed to be one of many main drivers of the present downward stress on the Bitcoin worth. Nonetheless, the CryptoQuant CEO believes that the influence of the government selling seized BTC belongings is being over-inflated.
This analysis is predicated on the realized cap of Bitcoin in a few yr. Based on CryptoQuant knowledge, $224 billion has moved into the market since 2023, however solely $9 billion (lower than 5%) is from government-seized BTC. It’s value noting, although, that this knowledge solely accounts for Bitcoin seized by the USA and German governments.
Supply: Ki Young Ju/X
Younger Ju famous in his publish that the realized cap right here represents the whole capital that has flowed into the market since 2023. The “realized” cap differs from the extra conventional “market” cap in that it’s primarily based on the worth 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 just isn’t over but. Based on the blockchain agency CEO, the bull run will seemingly proceed till early subsequent yr.
What’s extra, Younger Ju was in a position to pinpoint the potential prime 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 Worth At A Look
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. Nonetheless, the market chief remains to be down by almost 6% within the final seven days.
BTC worth at $56,401 on the every day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView