Since June, the BTC market has seen multiple “whale sell-offs.” Although there have been recent reports that the German government is also selling its BTC holdings, most of these sell-offs have come from miners and other whales.
Due to the large size of the transactions, the government's sales can be classified as "whale movements." Many market participants also claim that they have contributed to the increase in selling pressure and the decline in BTC prices.
However, Ki Young Ju, founder and CEO of CryptoQuant, disagrees, arguing that the reaction of government-linked wallets to the sell-off is mostly overestimated.
Interestingly, his view is based on the cumulative value of BTC inflows over the past year.
In total, addresses associated with the U.S. and German governments sent more than $737 million worth of BTC to crypto asset exchanges Coinbase, Bitstamp, and Kraken over the past two weeks.
In essence, these transfers are nothing more than a sell-off by exchanges. But it is worth noting that these transfers occurred during a month-long decline in BTC prices, which exacerbated the selling pressure.
However, while headlines about “government selling BTC” may spark fear, uncertainty, and anxiety in the crypto asset community, in the grand scheme of things, the volume of the sell-off is actually not that large.
According to CryptoQuant data shared by Ki Young Ju, BTC has received more than $224 billion in inflows since 2023, of which only 4% is related to government-seized assets.
Additionally, the data shows that government-seized BTC has contributed approximately $9 billion to realized market capitalization since 2023.
Judging from this realized market value data, the BTC owned by the government obviously does not have much power and is insignificant compared to the funds in the market.
Realized market cap is a unique way to look at BTC’s true valuation, taking into account the price at which each BTC last moved from its current position, which more accurately reflects how much fiat currency has flowed into BTC.
Author: Blockchain Knight; from the ChainDD content open platform "DeDehao", this article only represents the author's point of view, not the official position of ChainDD. For all "DeDehao" articles, the originality and authenticity of the content are guaranteed by the contributors. If the manuscript is plagiarized, falsified, etc., the legal consequences caused by the contributors themselves are responsible. If there is infringement, violation of regulations and other inappropriate content on the DeDehao platform, please supervise the readers. Once confirmed, the platform will be offline immediately. If you encounter any problems with the content of the article, please contact WeChat: chaindd123
