Bitcoin ETF

Bitcoin

<p>The post <a href="https://coinpedia.org/news/government-bitcoin-sell-off-wont-shake-crypto-market-say-cryptoquants-ceo/" rel="noopener noreferrer nofollow">Government Bitcoin Sell-Off Won’t Shake Crypto Market Say CryptoQuant’s CEO</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Recent, selling of sized bitcoin by the German government has exerted selling pressure that triggered panic among crypto investors. This move has somewhat resulted in <a href="https://coinpedia.org/news/large-bitcoin-wallets-see-major-gains-amid-bitcoin-price-dip-to-56k/" rel="noopener noreferrer nofollow">Bitcoin’s price dropping by 4.3%</a> in the past day and over 6.63% in the past week, pushing it below the $54,000 mark.&nbsp;</p>
<p>Perhaps, CryptoQuant CEO Ki Young Ju suggests that government Bitcoin sales may not have as significant an impact on the market as previously thought.</p>
<h2 class="wp-block-heading" id="h-minimal-impact-of-government-selling-btc">Minimal Impact Of Government Selling BTC</h2>
<p>According to Ki Young Ju, around $224 billion has flowed into the Bitcoin market since early 2023. In comparison, government-seized Bitcoin amounts to about $9 billion, accounting for only 4% of the total realized cap in this period. This challenges the idea that government-held Bitcoin significantly impacts market liquidity.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">CryptoQuant CEO Ki Young Ju: Government Bitcoin selling is overestimated. $224B has flowed into this market since 2023. Government-seized BTC contributes about $9B to the realized cap. It's only 4% of the total cumulative realized value since 2023. The realized cap represents the…</p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1809521876303245656?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 6, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Meanwhile, Ju highlights the importance of the realized cap, which differs from the traditional market cap. While market cap multiplies <a href="https://coinpedia.org/news/bitcoin-bottom-and-upcoming-ethereum-etf-to-boost-altcoins/" rel="noopener noreferrer nofollow">Bitcoin’s current price</a> by its total supply, the realized cap is calculated based on the last price at which each Bitcoin moved.&nbsp;</p>
<p>However, the realized cap, according to Ju, reflects the total value of on-chain trades, often described as a “graveyard of exit liquidity victims.”&nbsp; It reflects the capital accumulated as profits are realized and trades are executed. A higher realized cap suggests stronger fundamental support for asset prices, particularly in speculative markets like Bitcoin.</p>
<h2 class="wp-block-heading" id="h-bitcoin-etf-inflows-surge">Bitcoin ETF Inflows Surge</h2>
<p>CryptoQuant’s CEO suggests that despite worries over government Bitcoin sales, the <a href="https://coinpedia.org/news/large-bitcoin-wallets-see-major-gains-amid-bitcoin-price-dip-to-56k/" rel="noopener noreferrer nofollow">market continues to be strong </a>with substantial new capital flowing in. This influx of capital supports Bitcoin prices, which could help stabilize the market during periods of volatility.</p>
<p>Recently SpotOnChain, a popular analytics firm, reported that Bitcoin ETFs saw net inflows exceeding $143 million on July 5.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> <a href="https://twitter.com/hashtag/ETF?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#ETF</a> Net Inflow July 5, 2024: +$143M!<br><br>• The 10 US Bitcoin ETFs received a net inflow of $238M with inflows on 2 out of 4 trading days this week, despite the <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> price dropping 7%.<br><br>• Only <a href="https://twitter.com/hashtag/Grayscale?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Grayscale</a> (GBTC) saw an outflow yesterday.<br><br>• <a href="https://twitter.com/hashtag/BlackRock?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BlackRock</a> (IBIT) had a net flow… <a href="https://t.co/27gGIVOLDr" rel="noopener noreferrer nofollow">pic.twitter.com/27gGIVOLDr</a></p>— Spot On Chain (@spotonchain) <a href="https://twitter.com/spotonchain/status/1809436299990020104?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 6, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>According to their data, Grayscale’s ETF (GBTC) experienced outflows of $28 million on the same day. The Fidelity ETF (FBTC) led with $117 million in investments, followed by the Bitwise Bitcoin ETF (BITB) with $30 million in inflows. However, certain exchange-traded funds recorded zero flows during this period.</p>

Government Bitcoin Sell-Off Won’t Shake Crypto Market Say CryptoQuant’s CEO

Table of Contents

CoinPedia News

Other articles published on Jul 6, 2024

When Will Ethereum Price Recover?

High ROI Crypto Projects for July 2024

Trapped in Market Correction? 3 Altcoins to Restore Your Portfolio Value

Institutional Purchases Reduce Bitcoin Prices

Ripple’s XRP price continues to decline despite legal win against the U.S. SEC

Bitfinex to refund investors of its failed El Salvador Hilton hotel project

Join our free newsletter for daily crypto updates!