Justin Sun, a household name in the crypto ecosystem, has verbalized his idea to buy bitcoin reserves from a German government-labeled crypto wallet off-market. By doing so, he intends to nullify the selling pressure engendered by the wallet every time it moves its holdings to centralized exchanges (CEXs).
He posted his intent to negotiate with the German government on X, “I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.” The deal would be everything out of the ordinary as the wallet holds over $2.3 billion in bitcoin.
The German government obtained 50,000 bitcoins in January by seizing them from Movie2k, a movie piracy website. It has been selling parts of the seizure since February and will most probably liquidate its holdings entirely. Arkham Intelligence connected the dots by tracing it back to the government in Germany, labeling the wallet ‘German Government (BKA).’
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BKA is Germany’s Federal Criminal Police Office, responsible for taking Movie2K down and seizing its bitcoin stash. Justin Sun’s offer to acquire the BKA-labelled bitcoins comes to prevent the largest cryptocurrency from dropping further in price. Most recently, on July 4, the wallet moved about 3,000 bitcoins worth $172 million. While over $90 million was sent to an unknown address, $75 million got channeled to CEXs Kraken, Coinbase, and Bitstamp.
These transactions caused bitcoin’s price to drop immediately, causing it to hit lows it has not seen since May. Bitcoin fell to below $57,000. The second half of June also saw bitcoin prices struggling to move upward, with the asset losing most of its gains recorded in May. And that was because of this wallet moving thousands of bitcoins to CEXs for liquidations.
Selling its bitcoins off-market will prevent such issues and let bitcoin grow to new heights as the market remains relatively bullish.
Image by Bernd Scheumann from Pixabay
