The government sells out their bitcoin holdings not because they want to make a profit out of them but because they want to dump what they have seized from scammers and whatever institutions they seize them from. It's just a case of let's dump it and get over; it's not about a case of them buying and wanting to sell it for profit.
As we all know, Germany is a rich country. The selling was not even done by the country government itself but by a small state in the country, Saxony. If we are talking about investment and long-term profit, it should not be from coins they seize.
Real investors that invest a heavy amount know what they are doing; they might not be entirely right, but as long as they have seen profit, I don't see any harm in selling. You never can tell what that decision might have saved the company from. We always start thinking about the negativity of large sales when price starts pumping up without also looking at the other side if reverse was the case.
Exactly, I don't think Germany invested in bitcoin and the sales only brought revenue to the country and nobody knows when they started holding it and sold when possibly they think it is okay since they have seen considerable profits from holding the bitcoin.
Nevertheless, I see faithlessness in bitcoin from their action, because if they were really very much business minded, they would've waited for the bull run to properly ensure before selling off and making more gains in the process, so I don't really think those sales were made from the economic point of view.