The US and German governments sell off Bitcoin, but the market is not very volatile
Since June, the Bitcoin market has experienced three large-scale sell-offs, among which miners and large investors are the main force of the sell-offs, and the German government has also participated in the sell-offs. The government's sell-off is regarded as a market vane due to its large scale, causing the market to worry that the price of Bitcoin will fall further.
However, Ki Young Ju, founder of CryptoQuant, believes that the market is too sensitive to the government's sell-off of Bitcoin. He made this point based on the inflow of Bitcoin in the past year.
In fact, although the total amount of Bitcoin transferred to exchanges by the US and German governments in the past two weeks is as high as US$737 million, the Bitcoin held by the government is only a negligible part of the huge capital flow in the Bitcoin market. Since 2023, Bitcoin has attracted about US$224 billion in capital inflows, of which only 4% is related to government confiscated assets.
Therefore, although the news of "government selling Bitcoin" may cause a short-term panic in the crypto community, in fact, the scale of government selling is not large and the impact on the market is relatively limited.
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