
Bitcoin Overcomes FUD: Insights from CryptoQuant CEO on BTC Price Action
According to Ki Young Ju, CEO of CryptoQuant, Bitcoin has successfully navigated significant challenges this year, including instances of “FUD,” which stands for fear, uncertainty, and doubt. His comments come in light of the market’s resilience amid substantial selling pressure from two notable events: the sales of Bitcoin associated with Mt. Gox and the liquidation of confiscated Bitcoin by the German government.
In January, German officials revealed they had confiscated nearly 50,000 Bitcoin, valued at around $2 billion, from a suspect who voluntarily transferred the assets amid allegations of unauthorized use of copyrighted materials and commercial money laundering. The government’s decision to auction off this Bitcoin raised concerns that adversely affected BTC’s price.
Similarly, speculation intensified when Mt. Gox announced plans to repay thousands of customers approximately $9 billion worth of Bitcoin. There were worries that these customers might offload some of their Bitcoin holdings to capitalize on significant gains.
In a recent tweet, Ju referenced an earlier statement from July concerning the potential impact of the Bitcoin sell-side liquidity stemming from Mt. Gox. He remarked that Bitcoin has effectively countered this year’s FUD, as the market absorbed the sales from both Mt. Gox and the German government with minimal effects. By July, the German government completed its last Bitcoin distribution, concluding a series of sales that had been a source of market speculation.
### Bitcoin’s Strong Performance in September
Bitcoin is on track for one of its best September performances, aided by a global trend of interest rate cuts spearheaded by the U.S. Federal Reserve. The cryptocurrency has risen nearly 11% this month, significantly outperforming the average historical loss of 5.9% for September over the past decade.
In September, major central banks, including the Federal Reserve, the European Central Bank, and the People’s Bank of China, all implemented cuts to borrowing costs to foster economic growth.
As of the latest updates, Bitcoin had increased by 1.76% within the last 24 hours, reaching $65,434 after hitting highs of $66,000 during Friday’s trading session. The cryptocurrency is up 4.39% weekly and has gained 56% since the beginning of 2024, driven by investments in U.S. Bitcoin exchange-traded funds. However, it remains below its March peak of $73,798.