Why US and German Governments Selling Bitcoin Isn't a Problem

The Bitcoin market has seen three big selloffs since June. The bulk of these selloffs have come from miners and a few other whales, but the German government is also selling.

Government selloffs are whale movements because of their massive magnitude. Many market players might also claim they increased selling pressure and lowered Bitcoin prices.


CryptoQuant founder and CEO Ki Young Ju disagrees. He thinks responses to government pocket selloffs are overblown. Interestingly, his opinion is based on Bitcoin inflows over the last year.

Government Selling Bitcoin Is Overrated
approximately the previous two weeks, US and German government addresses have transmitted approximately $737 million in Bitcoin to Coinbase, Bitstamp, and Kraken. Exchange selloffs are inevitable with these moves.

The fact that these transactions happened during a month-long Bitcoin price drop has added to the selling pressure.

While news about “governments dumping Bitcoin” may cause crypto community FUD, the situation is not that serious. The governments sold some of their Bitcoin assets, although the sell-off wasn't that big.


According to CryptoQuant statistics supplied by Ki Young Ju, Bitcoin has received approximately $224 billion since 2023, with just 4% related to government-seized assets. Data demonstrates that government-seized BTC has added $9 billion to the market value since 2023.

This market cap data shows that government-owned Bitcoins are weak and insignificant compared to market money. Realized market cap is a unique Bitcoin valuation method. It considers the last price each BTC changed from its present location. This shows more accurately how much fiat cash has entered BTC.

Bitcoin is now trading at $57,360, recovering some of its seven-day losses. Crypto fell the most since the bull cycle started at the 2022 bottom in recent declines. Crypto still has issues. Before Bitcoin to rise again, bulls must push the price beyond $60,000.

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