The German government has emerged as one of the main reasons behind the ongoing crypto market crash, owing to its daily BTC sell-offs.
Today on Thursday, the German authorities transferred 3000 BTC worth $175 million to various crypto exchanges.
However, Tron founder Justin Sun has offered a solution which could ease the selling pressure on Bitcoin. He has offered to purchase the government’s BTC holdings off-market.
Will Sun’s Plan Put An End To The Crypto Market Crash?
The German government currently holds 40,359 BTC – worth over $2.3 billion. Experts have revealed that it is selling 5k BTC per week, which could take over 8 weeks before this incessant Bitcoin sell-off is over.
Therefore, Sun’s plan to buy the BTC off-market could be a game-changer, if it is approved by the German authorities. However, that is one big if.
The current German chancellor Olaf Scholz isn’t pro-crypto, calling Bitcoin a “tulip-style bubble”. It is unclear whether his stance has undergone any significant change. Nevertheless, he does not appear to have any obligation to reduce the selling pressure on Bitcoin by approving Justin Sun’s plan.
The German government isn’t the only entity that is making investors jittery. The US government holds $12 billion worth of Bitcoin, while Mt. Gox is set 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. Similarly, the Mt. Gox repayments could start as early as July.
Consequently, it does not seem like Justin Sun’s proposed plan would be able to stem the positive supply shock in Bitcoin.
However, experts believe that the bad news rarely ever marks the start of a bear market. Quite the contrary, they often mark the local bottom. Indeed, several analysts believe that the Bitcoin price has reached its bottom when it dipped below $57,000 today.
Nevertheless, investors need to be cautious. Bitcoin is currently trading near two crucial support levels – the 1-week 200 MA and the 3-day 200 MA – which could facilitate a bullish reversal.
However, a breakdown below means that $52,000 could be in the cards.
Investors Look To Crypto Presales Amidst Market Downturn
The weakness in the cryptocurrency market has resulted in traders looking towards presale projects. Tokens are offered at a fixed, discounted price during their presales, which allows investors to focus on the fundamentals rather than the short-term crypto market crash.
For instance, the new AI-powered meme coin WienerAI has raised over $7 million in its ICO, a sign of its high upside potential.
AI and memes are a rare combination. WAI’s memable mascot – a part dog and part sausage hybrid – has caught the attention of meme coin investors. On the other hand, its upcoming Trading Bot could make it a major player in the AI sector.
Indeed, the project claims its AI-enabled bot to be the ChatGPT of crypto. Token holders can receive alpha trading strategies, MEV protection and seamless swaps, all at no extra costs.
Owing to its unique value proposition, WAI has received praise from several experts, some of whom have also called it one of the best crypto to buy now.
Another meme coin Pepe Unchained is also in high demand, having already raised over $2 million in its ICO.
Analysts are backing it as the best Pepe alternative, thanks to its own Layer-2 blockchain that is expected to offer low trading costs and high staking rewards. As a result, this meme coin could see significant retail investment.
Popular crypto influencers such as Tyler Hill have publicly backed PEPU, impressed by its strong fundamentals and potential correlation with PEPE.
