Bitcoin (CRYPTO:BTC) has faced significant bearish pressure recently, dipping below $54,000 amidst reports of government selloffs and reactions to the Mt. Gox payout news.

CryptoQuant CEO Ki Young Ju provided insights on these events, suggesting that fears over the impact of government BTC sales may be exaggerated.

He pointed out that only a small fraction (less than 5%) of the total capital influx into Bitcoin since 2023 stems from government-seized BTC, based on realised cap data.

Young Ju expressed confidence in Bitcoin's long-term prospects, predicting the continuation of the current bull cycle into early next year.

He identified a potential peak for this cycle around $112,000, using the realised cap metric to gauge future price movements.

Despite recent price fluctuations, Bitcoin has rebounded above $56,000, showing resilience amid market uncertainties.