The cryptocurrency market has taken an attention-grabbing flip over the previous few days, with the value of Bitcoin coming beneath vital bearish stress. The highest cryptocurrency fell under the $60,000 mark on Thursday, July 4, hitting as little as $57,000.
BTC costs continued to fall on Friday, with the market chief briefly falling under $54,000. This disappointing worth motion has been linked to a wide range of occasions, together with a authorities sell-off and a potential sell-off following the Mt. Gox fee information.
CryptoQuant CEO: Authorities Bitcoin sell-off is overvalued
In a brand new article on the X platform, CryptoQuant CEO and founder Ki Younger Ju weighed in on current studies of governments promoting seized BTC belongings. Most notably, the German authorities has been executing varied transactions involving giant quantities of Bitcoin in current weeks.
The FUD (Worry, Uncertainty and Doubt) caused by the current sell-off is believed to be one of many essential drivers of the present downward stress on Bitcoin costs. Nonetheless, the CEO of CryptoQuant believes that the affect of the federal government’s sale of seized BTC belongings has been overstated.
This evaluation is predicated on the higher restrict of what Bitcoin can obtain in a couple of 12 months. In line with CryptoQuant, $224 billion has entered the market since 2023, however solely $9 billion (lower than 5%) has come from government-seized BTC. However it’s value noting that this information solely pertains to Bitcoin seized by the U.S. and German governments.
Supply: Ki Younger Ju/X
Younger Ju famous in his submit that the realized cap right here represents the full capital flowing into the market since 2023. When it lastly moved.
In a separate article on In line with the CEO of a blockchain firm, the bull market could proceed till early subsequent 12 months.
Extra importantly, Younger Ju was ready to make use of the realized cap indicator to establish potential tops within the Bitcoin cycle. The founding father of CryptoQuant expects the highest cryptocurrency to peak round $112,000 this cycle.
Bitcoin Value at a Look
Bitcoin costs climbed again above $56,000 late on Friday, July 5, and are buying and selling at $56,400 on the time of writing. Nonetheless, the market chief has fallen practically 6% over the previous seven days.
BTC worth at $56,401 on the day by day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView