The cryptocurrency market has seen an attention-grabbing flip in current days, with the value of Bitcoin enduring intense bearish stress. On Thursday, July 4, the premier cryptocurrency broke beneath the $60,000 mark and fell as little as $57,000.
BTC continued its worth slide on Friday, with the market chief falling beneath $54,000 at one level. This disappointing worth run was linked to varied occasions, together with authorities sell-offs and potential promoting following information of the Mt. Gox.
Bitcoin authorities sale is overrated: CEO of CryptoQuant
In a brand new put up on the X platform, CryptoQuant CEO and founder Ki Younger Ju addressed current stories of governments offloading seized BTC property. Most notably, the German authorities has been conducting varied transactions involving important quantities of Bitcoin in current weeks.
FUD (Worry, Uncertainty, and Doubt) from the current sell-off is believed to be one of many foremost drivers of the present downward stress on the value of Bitcoin. Nevertheless, CryptoQuant's CEO believes that the influence of the federal government's sale of seized BTC property is overblown.
This rating is predicated on the realized Bitcoin cap in a couple of 12 months. In line with CryptoQuant information, $224 billion has moved into the market since 2023, however solely $9 billion (lower than 5%) comes from government-seized BTC. Nevertheless, it's price noting that this information solely represents bitcoins seized by the governments of the US and Germany.
Supply: Ki Younger Ju/X
In his put up, Younger Ju famous that the realized cap right here represents the full capital that has flowed into the market since 2023. The “realized” cap differs from the extra conventional “market” cap in that it’s primarily based on the value of every coin when it was final moved.
In a separate put up on X, the founder reiterated his perception within the premier cryptocurrency's long-term promise and said that Bitcoin's bull cycle is way from over. In line with the CEO of a blockchain agency, the bull run is prone to proceed till early subsequent 12 months.
What's extra, Younger Ju was in a position to pinpoint the potential prime of the Bitcoin cycle utilizing the realized cap metric. The founding father of CryptoQuant expects the main cryptocurrency to peak on this cycle across the $112,000 worth stage.
BTC worth at a look
The value of Bitcoin recovered above $56,000 within the late hours of Friday, July 5, and is buying and selling at $56,400 on the time of writing. But the market chief remains to be down 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
