- A supply glut from Mount Gox and government agencies worsened market sentiment.
- The founder of Tron offered to buy the BTC shares from the German government to reduce the negative market impact.
The crypto market’s problems worsened on July 4, amid preparations and test trades by Mount Gox to begin distributing approximately $8 billion worth of crypto coins. Bitcoin [BTC].
Despite the looming Mount Gox overhang, the German government continued to sell off its BTC holdings.
On July 4, it moved 3K BTC but dumped 1.3K BTC, worth over $78 million, to Bitstamp, Coinbase and Kraken, further disrupting the market.
Amid the ensuing carnage in the marketplace, Trons [TRON] founder, Justin Sun, offered to buy all the German government’s BTC from the market to blunt the impact.
“I am willing to negotiate with the German government to buy all BTC outside the market to minimize the impact on the market.”
German Bitcoin Ownership and Market Reactions
According to facts from Arkham Intelligence, the German government still had 40.3K BTC, worth $2.3 billion, to offload. However, it was not clear whether Sun’s proposal was legitimate or just a typical joke.
Nevertheless, Sun’s offer, even if successful, cannot effectively stem the ongoing market crisis. Besides the German government, three other BTC whales dumped on July 4, dragging BTC to $57,000.
Spot on chain facts revealed that the US government also moved $13.67 million worth of BTC and still held $12.3 billion.
Additionally, two unmarked whale wallets unloaded more than 4.5,000 BTC, worth nearly $270 million, adding to the selling pressure.
Source: X/SpotOnChain
For his part, crypto market commentator Samson Mow said criticized the decision of the German and US governments to sell BTC directly to exchanges.
“Imagine selling the most difficult form of money that has ever existed… Finally, imagine selling on an exchange using market orders, which drives the price lower so you get even less.”
The drop to the $57K level resulted in a loss for more than 65% of BTC addresses, especially for users who bought between $48.6K and $65.9K.
Source: IntoTheBlock
Plus, there’s the extensive dump liquidated $113 million BTC positions, with longs bearing the brunt of nearly $100 million stretch positions in the last 24 hours.