Crypto mogul Justin Sun has expressed his intention to buy a massive trove of Bitcoin, valued at approximately $2.3 billion. Sun made this bold claim as the crypto markets witnessed significant panic, particularly from the German government’s recent extensive Bitcoin transactions.
Governments seize illicit crypto during various operations. Then they periodically auction off these digital assets, thereby introducing selling pressure into the market.
German Government Moves $174.3 Million Worth of Bitcoin
Over the past few weeks, the German government has been actively moving its crypto assets. It has transferred large amounts of Bitcoin to various wallets and exchanges.
Recent blockchain data analysis by Arkham shows that just today, the German crypto wallet moved 3,000 Bitcoin (BTC) worth roughly $174.3 million. The government distributed this BTC to several destinations, including major crypto exchanges like Bitstamp, Kraken, and Coinbase.
Read more: Who Owns the Most Bitcoin in 2024?
These movements are part of a broader trend that started on June 19, with the government shifting about 6,500 BTC, pushing the total value transferred to exceed $425.49 million. The origins of these assets are likely tied to criminal enterprises. Arkham suggested a connection to the defunct pirated movie site, Movie2k.
The recent transactions have noticeably impacted the crypto market, creating waves of concern among investors and traders. Indeed, the sensitivity of the market to such large-scale disposals became evident today as Bitcoin reached the $57,000 mark for the first time in two months. This surge was further fueled by an incident involving a crypto whale who sold $400 million worth of Bitcoin.
Amidst this volatility, Justin Sun has proposed to purchase the entire cache of Bitcoin currently held by the German government, amounting to 40,359 BTC.
“I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market,” Justin Sun posted to his 3.5 million followers.
Read more: How To Make Money With Intel-To-Earn on Arkham Intelligence
Sun’s strategy could potentially stabilize the market by preventing a large-scale sell-off on public exchanges, which might otherwise precipitate a sharp decline in Bitcoin prices. More than direct price impact, this move can ease the panic amongst crypto investors.
While some believe Sun’s action might protect markets from selling pressure, others find it unethical. In an interview with BeInCrypto, Guillermo Fernandes, Founder of Blockpliance, said that Sun’s actions are equivalent to market manipulation.
“I am of the belief that the German Government should reject Justin’s offer to buy the BTC via a private OTC transaction. That action, although noble-sounding, would indeed be market manipulation, as well as, potentially lead itself for corruptive or unethical practices where only people with the right contacts have access to these BTC and potentially at a less than market price. Also, nothing guarantees that the buyer won’t turn around and dump part of the holdings themselves,” Fernandes told BeInCrypto.
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