The German government has just initiated a new transfer of Bitcoin to the Coinbase, Kraken and Bitstamp exchanges. In order to limit the impact of a potential massive sale of BTC, Tron founder Justin Sun says he is ready to negotiate with the German government to buy all these BTC for more than $2 billion.
German government in search of liquidity
Since mid-June, the German government has moved nearly $315 million in Bitcoin across various cryptocurrency exchanges.
Still in this dynamic, A transfer of 1,300 BTC, or $75 million, has just been initiated to the Coinbase, Kraken and Bitstamp exchanges.
UPDATE: German Government selling up to $175M BTC
In the past 2 hours the German Government has moved 1300 BTC ($76M) to exchange deposits at Kraken, Bitstamp and Coinbase.
They also moved 1700 BTC ($99M) to address 139Po. These funds are likely to move to a deposit for an… pic.twitter.com/ZMTxoipo5d
— Arkham (@ArkhamIntel) July 4, 2024
It is therefore $390 million in Bitcoin in total left the German reserve to end up on CEX. Thus, of the 50,000 BTC seized in 2013 from the former operator of the movie piracy site Movie2K, 40,359 are still held by the government.
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These constant flows to centralized exchanges show a willingness to liquidate German reserves. This currently represents only 20% of the Bitcoin treasury held by the German Federal Criminal Police Office.
Still, this is enough to worry investors, who fear a potential impact on the price of cryptocurrencies. Indeed, over the last 30 days, the Bitcoin price has fallen by almost 17%, reaching its local bottom. A rather positive sign, which should be accompanied by a very imminent rebound according to analyst Titan of Crypto.
Figure 1 – Chart showing the similarities between the market in 2023 and 2024 (via @Washigorira)
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Faced with inflows fueling bearish sentiment, Justin Sun offers a surprising solution
These sales are also reflected on the other side of the ocean. Indeed, Last week, the United States government sent 3,940 BTC to the Coinbase exchange.
Again, out of the approximately 214,000 BTC worth $13 billion, this sum represents a drop in the ocean for Uncle Sam.
But this coordination of Bitcoin inflows on cryptocurrency exchange platforms does not bode well for the market. Indeed, if If the latter were to find itself drowned by a one-way influx, the overall market sentiment could turn pessimistic.
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Therefore, to limit a potential global scale damage, the founder of Tron, Justin Sun announced that he is ready to negotiate with the German government to buy all the BTC he still owns.
I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.
— HE Justin Sun ĺ™ĺ®‡ć™¨ (@justinsuntron) July 4, 2024
We can't really know how serious Justin Sun would be about buying that $2.2 billion worth of Bitcoin. He has indeed repeatedly stated his willingness to play the hero who would come to the rescue of the imperiled market without it coming to fruition.
Unsurprisingly, this announcement has had the effect of a tidal wave in the crypto community. We have not received any sign from the German government yet, but if this offer were to be accepted, it would be a positive sign for the crypto market, which is currently experiencing a significant wave of pessimism.
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