Tron founder Justin Sun has shown interest in buying off the remaining German government’s Bitcoin stash. He made this call known in the wake of the consistent selloff by the German Criminal Police. This action is expected to reduce the selling pressure on Bitcoin. If done right, the price may stabilize in due course.
Bitcoin Sell-off Impact on the Market’s Price
Germany resumed its Bitcoin selloff in June. Since then, the government Bitcoin’s reserves has been depleted in an aggressive manner.
This consistent selling has contributed to the slump in the price of Bitcoin. It was reported in June that the government transferred a whopping $425 million worth of Bitcoin (BTC) to Kraken, Bitstamp and Coinbase. Earlier on June 4, it sold off an extra 1300 BTC to the crypto exchanges. Notably, the government wallet has offloaded nearly 9,641 units of the premier coin.
The selling pressure from Germany, along with the expected Mt.Gox Bitcoin distribution has weighed heavily on the market sentiment. The crypto community has raised concerns that a Bitcoin selloff could have a negative impact. This impact is similar to the outflow of the spot Bitcoin ETF.
Justin Sun Wades In
Known for his massive whale selloff, Justin Sun’s interest in buying the remaining 40,000 BTC from the German government did not come as a surprise. In an X post, he shared his desire to discuss with the German government regarding the leftover from its selloff.
I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) July 4, 2024
Despite the noble proposition from Justin Sun, many in the industry showed skepticism on his seriousness. Nevertheless, the German government has not issued an official statement that might show it is open to selling to Sun.
It is worth noting that if the selling rate persists, it could reduce all its BTC holdings possibly by the end of September as some projected. Nevertheless, despite recent sales, the price of Bitcoin has maintained support at the $57,000 price mark.
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