German Government’s Ongoing Bitcoin Saga: Justin Sun Eyes Acquisition
Justin Sun has once again emerged with a bold proposal. The Tron Founder is now eyeing the German government’s BTC reserve, offering to purchase it off-market to mitigate any potential market disruptions.
The saga began when a wallet labeled as belonging to the German government made a suspicious transfer of 6,500 BTC on June 19, valued at over $425 million. This move raised concerns among traders about possible market instability.
The wallet in question is suspected to be associated with funds confiscated from the pirate movie platform Movie2k by the BKA in 2013. The gradual release of BTC from this wallet to exchanges has only worsened the already volatile market conditions.
Dubbed as the “German Government (BKA)” by Arkham Intelligence, this wallet has become a focal point for traders wary of its potential impact on the market.
Bitcoin experienced a fresh decline to $56,770 following the German government’s transfer of an additional 1,300 BTC, worth almost $75 million, to three major exchanges – Kraken, Coinbase, and Bitstamp. Within the last 15 days, approximately 9,641 BTC have been sold by the government, leaving them with around 40,360 BTC.
Despite a statement from a BKA spokeswoman asserting that the seized Bitcoin is not held by the criminal unit, Sun’s offer to purchase all BTC off-market from the German government has garnered attention. In a tweet, Sun expressed his willingness to negotiate with the German government to acquire the BTC privately in order to minimize any market impact.
It appears as though Sun is positioning himself as a crypto savior, swooping in to address the situation one headline at a time.
Experts suggest that the German government’s anticipated selling of BTC could have been better managed through an auction or over-the-counter (OTC) transactions. According to Bitfinex analysts speaking to CryptoPotato, the decision to transfer such a substantial amount of Bitcoin to exchanges has resulted in a market impact equivalent to over $450 million being sold on the spot market.
The combination of the Bitcoin sales on exchanges, estimated at around $70 million, and the closure of long positions in the perpetual markets has created a more significant market impact than the actual sales considered by the German government.
In conclusion, Sun’s proposal to acquire the German government’s BTC stash off-market has sparked interest in the crypto community amidst concerns about market stability and the handling of large-scale Bitcoin transactions.
