Justin Sun, Founder of the Tron network, has made a proposition to negotiate with the German government over the continuous sale of its massive Bitcoin stash.
Justin Sun motivation
According to Sun, his primary motivation is to prevent the negative impact of the sell-off on the broader market.
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
The German Federal Criminal Police Office started selling some of the Bitcoin proceeds it confiscated in May. Thus far, the government has offloaded over 9,641 BTC worth more than $550 million on cryptocurrency exchanges in small tranches.
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While its Bitcoin holdings pale in comparison to the broader circulating supply, the market sentiment to this sell-off is rather erratic. Earlier today, the German police transferred 1,300 BTC to Kraken, Coinbase and Bitstamp, a transfer that triggered a massive sell-off in the price of the coin.
At the time of writing, the Bitcoin price has lost its edge. The coin is changing hands for $57,400.54, down by 4.58% in the past 24 hours. This is the first time since mid-March that the price of Bitcoin will be trading as low as $57,000, a trend that does not speak well of network health.
Way forward
It remains unclear whether the German government will be open to discussing it with Justin Sun. With more than 40,000 BTC left in its portfolio, the government still has a sizable amount of Bitcoin to offload on the market.
The market may grow a thick skin as concerns the occasional sell-off from the government. This is a survival strategy, especially because more dumping is coming into the market soon.
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Like the German government, the United States government is also offloading its stash. This governmental sell-off might be complicated by the expected Mt. Gox repayment and likely sell-off. The market needs its inbuilt resilient mechanism to handle the bearish days ahead, at least until Sun’s offer is accepted.