Why is it not a big deal for the US and German governments to sell BTC?

Compiled by: Blockchain Knight

Since June, the BTC market has seen several "whale-style sell-offs". Although there have been recent reports that the German government is also selling its BTC holdings, most of these sell-offs are from miners and some other whales.

Due to the huge size of the transactions, the government's sell-offs can be classified as "whale movements". Many market participants also claim that they have contributed to the increase in selling pressure and the decline in BTC prices.

However, Ki Young Ju, founder and CEO of CryptoQuant, disagrees with this view. He believes that the response of government-related wallets to the sell-off is mostly overestimated.

Interestingly, his view is based on the cumulative value of BTC inflows over the past year.

In the past two weeks, addresses associated with the US and German governments have sent a total of more than $737 million worth of BTC to Crypto asset exchanges Coinbase, Bitstamp and Kraken.

In essence, these transfers are nothing more than sell-offs by exchanges. But it is worth noting that these transfers occurred during a month-long drop in BTC prices, which exacerbated the selling pressure. However, while headlines about "government selling BTC" may cause fear, uncertainty, and anxiety in the Crypto asset community, in the big picture, the amount of selling is actually not large. According to CryptoQuant data shared by Ki Young Ju, BTC has received more than $224 billion in inflows since 2023, of which only 4% is related to government-seized assets.

In addition, the data also shows that BTC seized by the government has contributed about $9 billion to the realized market value since 2023.

From this realized market value data, it is clear that the BTC owned by the government does not have much power and is insignificant compared to the funds in the market.

Realized market value is a unique way to observe the true valuation of BTC. It takes into account the price of each BTC when it last moved from its current position, which can more accurately reflect how much fiat currency has flowed into BTC.