Tron Founder Offers to Save the Day 🚀
Recently, the Tron Founder has caught the attention of the crypto community by setting his sights on the German government’s significant BTC stash. Offering to purchase it off-market, Justin Sun aims to minimize any potential impact on the market caused by the government’s actions.
- German government’s wallet transferred 6,500 BTC on June 19
- Concerns rose among traders about possible market turbulence
- Wallet linked to funds seized from Movie2k by BKA in 2013
- Gradual release of BTC to exchanges worsened market conditions
German Government’s BTC Moves Shake the Market 📉
Traders were taken aback when the German government recently transferred another 1,300 BTC, valued at almost $75 million, to three major exchanges – Kraken, Coinbase, and Bitstamp. With close to 9,641 BTC sold in the last 15 days, the government now holds about 40,360 BTC.
Despite the BKA denying ownership of the seized Bitcoin, Justin Sun’s bold offer to buy all BTC off-market in an attempt to soften the market blows has turned heads. Through his tweet, Sun expressed his willingness to negotiate with the German government for this deal.
“I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.”
This move paints Sun as a potential crypto hero swooping in to save the day from potential market chaos.
Unpacking the Market Impact 📊
Experts have raised concerns over the German government’s selling strategy for their BTC holdings, suggesting that auctions or OTC methods would have been more appropriate.
Bitfinex analysts, in a statement to Crypto enthusiasts, criticized the government’s decision to transfer a significant amount of Bitcoin to exchanges, estimating that the impact on the market was closer to $450 million rather than the actual $70 million being sold.
“By moving bitcoin to exchanges, even though the amount being sold is around $70 million, the impact is equivalent to over $450 million being sold on the spot market, if you consider estimated spot cumulative volume delta, based on aggregated data across major exchanges. Add to that the closing of long positions in the perpetual markets, this combines to create a much larger market impact than the actual sales being considered by the German government.”
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