Justin Sun Offers to Buy Germany's Bitcoin (BTC) Holdings Worth $2.3B to Mitigate Selling Pressure

Justin Sun has proposed to purchase the Bitcoin reserves held by the German government, worth more than $2.3 billion. This move is aimed at reducing the negative impact that the sale of such holdings could have on the cryptocurrency market.

renowned cryptocurrency entrepreneur has expressed his intention to purchase the Bitcoin (BTC) reserves held by the German government, valued at over $2.3 billion. This move is aimed at minimizing the negative impact on the cryptocurrency market, as the sale of such a large holding could potentially destabilize the market.

According to a report by Arkham Intelligence, a crypto forensics platform, the German government's cryptocurrency portfolio has been selling Bitcoin in the market. This portfolio, labeled by Arkham as "Governo tedesco (BKA)," is linked to the Federal Criminal Police Office (BKA) of Germany.

Back in January, the BKA confiscated 50,000 BTC in Dresden from the operator of Movie2k, which is where these funds are believed to have originated. However, it's still unclear which authority is handling the sale of the BTC.

A spokesperson for the BKA has stated that the criminal unit does not hold the seized Bitcoin. Instead, the responsibility for selling or converting the seized BTC into euros lies with the public prosecutor's office or the competent court, as per Article 60 of the Code of Criminal Procedure.

The proceeds from the seized assets are then paid to the revenue office of the place where the competent court is located.

Since June 19th, the portfolio linked to the German government has been observed selling Bitcoin. The latest transfer, which took place on July 4th, saw the movement of $172 million in Bitcoin to several cryptocurrency wallets. Some of these transfers were directed to three major centralized exchanges (CEXs)—Coinbase, Kraken, and Bitstamp—with a total of $75 million in Bitcoin being sent to these exchanges, indicating an intent to sell.

A few days prior, on July 2nd, the German government's portfolio transferred $52 million in BTC, with 100 BTC being sent to Coinbase, 150 BTC to Bitstamp, and 32.74 BTC to Kraken, out of a total of 375 BTC being sold.

Bitcoin recently experienced a sharp drop to a low of $58,555 before quickly recovering. On June 25th, Bitcoin showed signs of consolidation above the psychological threshold of $60,000, marking the end of the bear phase.

The cryptocurrency surpassed the current support and reached a peak of $63,911, but the positive momentum was halted by the 21-day simple moving average (SMA), which acted as resistance at $64,000.

After being rejected by the moving average line, Bitcoin returned to the support level of $60,000. If the sellers manage to break the current support of $60,000, Bitcoin could fall further, reaching a low of $58,555.

An additional bear momentum could bring the price down to $56,711. On the other hand, if the support of $60,000 holds, Bitcoin will continue to move within a range below the moving averages.

The simple moving average over 21 days is currently acting as a resistance line for the price. On July 1st, a long candlestick surpassed this resistance, but the long shadow of the candlestick indicates strong selling pressure at this level.

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