The ongoing decline in the crypto market is significantly attributed to the actions of the German government, which continues to sell large volumes of BTC on a daily basis. Today, German authorities have moved 3000 BTC, valued at $175 million, to various crypto exchanges. In response, Justin Sun, founder of Tron, has proposed a potential solution to alleviate the selling pressure on Bitcoin. He has expressed willingness to engage in off-market negotiations to acquire the government’s BTC holdings.
“I am willing to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.” – H.E. Justin Sun (@justinsuntron) July 4, 2024
Will Sun’s Proposal Stabilize the Crypto Market?
Currently, the German government holds 40,359 BTC, worth over $2.3 billion. Reports indicate they are selling approximately 5,000 BTC weekly, suggesting the sell-off could extend for more than 8 weeks.
“The German Government is selling about 5K $BTC per week currently. At this pace it will take about another 8 weeks until everything is sold. This is assuming the pace of selling remains the same and they don’t stop earlier.” – Daan Crypto Trades (@DaanCrypto) July 4, 2024
Sun’s initiative to acquire BTC off-market could be transformative if approved by German authorities. However, approval remains uncertain, especially given Chancellor Olaf Scholz’s cautious stance on cryptocurrencies, referring to Bitcoin as a “tulip-style bubble.” Whether his position has evolved is unclear, and there is no guarantee he will ease the pressure on Bitcoin by endorsing Sun’s proposal.
The German government is not the sole source of anxiety for investors. The U.S. government holds $12 billion in Bitcoin, and Mt. Gox is poised to distribute $9 billion in BTC by October.
“In fact, the US government has already sold $241 million worth of Silk Road BTC last week. Similarly, the Mt. Gox repayments could start as early as July.”
Therefore, despite Sun’s potential intervention, experts believe it may not counterbalance the influx of Bitcoin into the market. However, they suggest that negative developments often signal a market’s local bottom rather than the start of a bearish trend. Analysts argue that Bitcoin may have stabilized around $57,000 today but caution that further declines to $52,000 are plausible.
Investors Seek Refuge in Crypto Presales Amid Market Turbulence
With the crypto market under pressure, traders are turning to presale projects where tokens are offered at discounted fixed prices, focusing on long-term fundamentals rather than short-term market volatility.
“For instance, WienerAI, a new AI-powered meme coin, has raised over $7 million in its ICO, showcasing strong potential.”
WienerAI has gained attention not only for its unique meme-worthy mascot but also for its upcoming Trading Bot, positioning it as a significant player in the AI sector. It promises alpha trading strategies, MEV protection, and seamless swaps at no additional cost.
“More than just a bot–WienerAI is your ultimate crypto trading companion.”
Additionally, Pepe Unchained, another meme coin, has raised over $2 million in its ICO. It offers a Layer-2 blockchain promising low trading costs and lucrative staking rewards, attracting considerable retail investment.
“Influencers like Tyler Hill have endorsed PEPU for its solid fundamentals and potential synergy with PEPE.”
In conclusion, while market conditions remain challenging, innovative projects like WienerAI and Pepe Unchained highlight opportunities for investors amidst the current crypto downturn.
