Justin Sun has put forth a proposal to acquire Bitcoin directly from the German government in a bid to mitigate its impact on the cryptocurrency market.
The founder of Tron and renowned crypto billionaire aims to prevent the German government’s ongoing sale of Bitcoin holdings, a move which analysts believe has contributed to a 19% decline in Bitcoin’s price over the past month, now standing at $56,849.
Sun’s offer, communicated on Thursday via X, suggests a private acquisition of all Bitcoin held by the German government, emphasizing his intention to minimize market disruption.
This initiative underscores Sun’s strategy to stabilize cryptocurrency prices during periods of significant market pressure. Previously, he intervened to safeguard Curve founder Michael Egorov’s CRV loan from liquidation and considered acquiring digital assets from FTX to shield against market instability due to bankruptcy proceedings.
The German government’s recent actions involve the sale of 50,000 BTC seized from the operators of Movie2k.to, with blockchain analysts first observing movements on June 19. Subsequent transactions totaling 1300 BTC ($76 million) were directed to exchanges such as Coinbase, Kraken, and BitStamp, while an additional 1700 BTC ($99 million) were likely deposited with an institutional or over-the-counter (OTC) service.
As of the latest data, the German government still retains 40,359 BTC valued at $2.31 billion.
Beyond Germany, investor concerns have intensified over Mt. Gox, the bankrupt Bitcoin exchange set to distribute 141,000 BTC to creditors starting this month, though actual distributions have yet to commence.
On-chain analytics also indicate rapid Bitcoin sales by miners in June, prompted by reduced post-halving revenues that have caused a 7.7% decline in the network’s total hashrate from its peak in April.
CryptoQuant’s market report highlighted that significant hashrate reductions historically correlate with conditions conducive to price stabilization.
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