Amid growing concerns over the German government’s potential massive sell-off of Bitcoin, Tron founder Justin Sun has announced plans to purchase all of their BTC to prevent market disruption.
As the cryptocurrency community watches closely, Sun’s strategy aims to mitigate the selling pressure and stabilize BTC prices.
Get the full story on this significant development and its potential impact on the market.
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Justin Sun’s Intent to Purchase All German Government Bitcoin
Justin Sun, the founder of Tron (TRX), revealed on July 4, 2024, his plan to purchase all of the Bitcoin (BTC) held by the German government, amid rising concerns over a potential massive sell-off.
The German government had seized approximately 50,000 BTC from the pirate movie site “Movie2k.” Reports on June 19, 2024, indicated that 6,500 BTC, valued at around $425 million, had been moved, and on July 4, 1,300 BTC was sent to multiple exchanges.
These significant transfers have sparked fears in the cryptocurrency market that the German government’s Bitcoin sale could lead to a decline in BTC prices.
In a post on X (Twitter) on July 4, Sun stated his intention to negotiate with the German government to buy all of their BTC off-market, aiming to minimize the impact on the market.
According to data from Arkham, the German government holds approximately 42,274 BTC, valued at around $2.43 billion at the time of writing.
If all these BTC were sold on the market, it could potentially cause a further drop in BTC prices, heightening concerns within the cryptocurrency industry.
Sun’s proposed purchase is seen as a measure to alleviate the selling pressure by acquiring the Bitcoin directly from the German government, thereby avoiding a large-scale sell-off that could negatively affect BTC prices.
Continued Market Uncertainty
Despite Sun’s plans, there are still concerns due to reports of multiple “whales” — entities holding large amounts of Bitcoin — sending substantial amounts of BTC to exchanges.
This ongoing trend of significant BTC transfers maintains the market’s apprehension about potential large-scale sell-offs.
Additionally, on June 24, the now-defunct crypto exchange Mt. Gox announced that it would start repaying BTC and BCH to creditors from July 2024.
On July 5, it was reported that 47,229 BTC had been moved from Mt. Gox’s wallet, raising further concerns about a possible influx of BTC into the market.
Whether Justin Sun will indeed purchase the BTC from the German government remains uncertain.
However, as selling pressure continues to mount, the cryptocurrency community is keenly watching to see if supportive measures can stabilize the market.
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