Why is it not a big deal for the governments of the United States and Germany to sell BTC

CoinWen.com reported:
Compiled by Blockchain Knight
Since June, the BTC market has experienced several “whale-like sell-offs”. Although there have been recent reports that the German government is also selling its BTC holdings, most of these sell-offs come from miners and other whales.
Due to the large trading volume, the government’s sell-offs can be classified as “whale trends”. Many market participants also believe that they have contributed to the increase in selling pressure and the decline in BTC prices.
However, Ki Young Ju, the founder and CEO of CryptoQuant, disagrees with this view. He believes that the reaction of wallets associated with the government to the sell-offs has been largely overestimated.
Interestingly, his view is based on the cumulative value of BTC inflows over the past year.
In the past two weeks, addresses related to the US and German governments have collectively sent over $737 million worth of BTC to crypto asset exchanges Coinbase, Bitstamp, and Kraken.
Essentially, these transfers are nothing more than sell-offs by the exchanges. But it is worth noting that these transfers occurred at a time when BTC prices had been falling for a month, which further intensified the selling pressure.
However, despite the headlines about “government selling BTC” that may cause fear, uncertainty, and anxiety in the crypto asset community, the overall amount of sell-offs is not significant.


According to CryptoQuant data shared by Ki Young Ju, since 2023, BTC has received over $224 billion in fund inflows, of which only 4% is related to government seizures.
Furthermore, the data also shows that government-seized BTC has contributed approximately $9 billion to the realized market value since 2023.
From this realized market value data, it is evident that the BTC owned by the government does not have much power and is negligible compared to the funds in the market.
Realized market value is a unique way to observe the true valuation of BTC, as it takes into account the price at which each BTC last moved from its current position, providing a more accurate reflection of how much fiat currency has flowed into BTC.