Coin World reported:
The cryptocurrency market has experienced an interesting turn in the past few days, with Bitcoin prices facing significant downward pressure. On Thursday, July 4, this top cryptocurrency fell below the $60,000 mark, dropping to $57,000.
BTC continued to decline on Friday, with the market leader dropping below $54,000 at one point. This disappointing price trend is related to various events, including government sales and potential sell-offs after news of Mt.Gox distributions.
Government Bitcoin sales overestimated: CryptoQuant CEO
In a recent post on the X platform, CryptoQuant CEO and Founder Ki Young Ju shared his views on recent reports of various countries selling confiscated BTC assets. Notably, in recent weeks, the German government has been executing various transactions involving significant amounts of Bitcoin.
The recent FUD (fear, uncertainty, and doubt) sell-offs are considered one of the main driving factors behind the current downward pressure on Bitcoin prices. However, the CryptoQuant CEO believes that the impact of government sales of confiscated BTC assets has been exaggerated.
This assessment is based on the realized cap of Bitcoin over the past year. According to CryptoQuant’s data, since 2023, $224 billion has flowed into the market, but only $9 billion (less than 5%) came from government-seized BTC. However, it is worth noting that this data only applies to Bitcoin confiscated by the US and German governments.
Source: Ki Young Ju/X
Young Ju pointed out in the post that the realized cap here represents the total capital inflow into the market since 2023. The difference between the “realized” cap and the more traditional “market” cap is that it is based on the price of each coin’s last movement.
In another post on X, the founder reiterated confidence in the long-term outlook for the top cryptocurrency and stated that the Bitcoin bull market is not over yet. The blockchain company CEO stated that the bull market may continue into early next year.
More importantly, Young Ju is able to use the realized cap metric to identify the potential top of the Bitcoin cycle. The CryptoQuant founder predicts that this top cryptocurrency will peak at around $112,000 in this cycle.
BTC price overview
Bitcoin prices recovered to above $56,000 on the evening of Friday, July 5, with a trading price of $56,400 at the time of writing. However, this market leader has still dropped nearly 6% in the past seven days.
Daily BTC price at $56,401 | Source: BTCUSDT chart on TradingView