Justin Sun Proposes Purchasing Bitcoin from German Government Amid Speculation on Crypto Market Recovery
The ongoing crash in the crypto market is partly attributed to the actions of the German government, which has been selling off large amounts of Bitcoin (BTC) on a daily basis. Just recently, the German authorities transferred 3000 BTC, equivalent to $175 million, to various crypto exchanges. However, Justin Sun, the founder of Tron, has come up with a solution that could alleviate the selling pressure on Bitcoin. He has offered to purchase the government’s BTC holdings off the market, and has expressed his willingness to negotiate with the German government in order to minimize the impact on the market.
The German government currently holds 40,359 BTC, which is valued at over $2.3 billion. It has been reported that the government is selling around 5,000 BTC per week, which means that it could take more than 8 weeks for the sell-off to be completed. This assumes that the selling pace remains the same and that they do not stop earlier.
Justin Sun’s plan to buy the BTC off the market could be a game-changer if it is approved by the German authorities. However, there is uncertainty regarding whether the plan will be accepted, as the current German chancellor, Olaf Scholz, has shown a negative attitude towards cryptocurrencies and has referred to Bitcoin as a “tulip-style bubble.” It remains to be seen if his stance has changed significantly. Nonetheless, he is under no obligation to approve Justin Sun’s plan and reduce the selling pressure on Bitcoin.
It is not just the German government that is causing concern among investors. The US government holds $12 billion worth of Bitcoin, and Mt. Gox is expected to distribute $9 billion worth of BTC by October. In fact, the US government has already sold $241 million worth of Silk Road BTC last week, and the Mt. Gox repayments could start as early as July. Therefore, it seems unlikely that Justin Sun’s proposed plan will be able to counteract the positive supply shock in Bitcoin.
Despite the current market downturn, experts believe that bad news usually does not mark the beginning of a bear market. On the contrary, it often indicates the local bottom. Some analysts even believe that the Bitcoin price has reached its bottom when it dropped below $57,000 recently. However, investors need to exercise caution as Bitcoin is currently trading near two crucial support levels, namely the 1-week 200 MA and the 3-day 200 MA, which could either facilitate a bullish reversal or lead to a breakdown below $52,000.
In light of the market downturn, traders have started looking towards presale projects in the cryptocurrency market. These projects offer tokens at a fixed, discounted price during their presales, allowing investors to focus on the fundamentals rather than the short-term market crash. One such project is WienerAI, an AI-powered meme coin that has raised over $7 million in its initial coin offering (ICO). Its unique combination of AI and memes, along with its upcoming Trading Bot, has attracted investors’ attention and positioned it as a potential major player in the AI sector.
Another meme coin called Pepe Unchained has also gained significant interest, having raised over $2 million in its ICO. Analysts are endorsing it as the best alternative to Pepe, citing its own Layer-2 blockchain that is expected to offer low trading costs and high staking rewards. This meme coin has the potential to attract substantial retail investment and has received support from popular crypto influencers like Tyler Hill, who are impressed by its strong fundamentals and its potential correlation with Pepe.
