There’s been a lot of talk about governments selling their Bitcoin lately, especially after the US and German governments moved some of their holdings. Some people are worried that this will cause the price of Bitcoin to crash. But is it really a big deal?
The Big Picture
CryptoQuant CEO Ki Young Ju says we shouldn’t overreact. He points out that over $224 billion worth of Bitcoin has been bought since the start of 2023. The amount of Bitcoin sold by governments is only a tiny fraction of that, around 4%.
This means that the impact of government sales on the overall Bitcoin market is pretty small.
Realized Market Cap Matters
Ki Young Ju also highlights the “realized market cap” of Bitcoin. This is a more accurate way of measuring the total value of Bitcoin, taking into account the last time each Bitcoin was moved.
The realized market cap shows that the Bitcoin held by governments is a tiny drop in the bucket compared to the total amount of money invested in Bitcoin.
Bitcoin’s Current State
Bitcoin is currently trading around $57,360. It’s recovering from some recent losses, but it’s still not out of the woods yet. Bitcoin needs to break through the $60,000 mark to resume its upward trend.
So, the bottom line is: Don’t let the news about government Bitcoin sales scare you. The overall market is much bigger than these small sales, and Bitcoin is still showing signs of strength. /p>
