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.
Everyone defines what profit means to them, and everyone has a reason for taking a certain action. For a state to take action means it should have been thought out, even if they have the worst financial advisors; they can't be that terrible not to know what they're doing at a particular point. So, there's only little information open to the media or for people to know; they're not going to give you insider information on why they sold their Bitcoin at that price. It could be for a previous loan or anything else.
They didn't sell now in November, when the Bitcoin market is bullish; they sold in July, when the price of Bitcoin differed. They know the conditions surrounding why they sold at that point. You can't say it was impatience; they've been holding on till July before selling, definitely for a reason. You can't say they were urgently looking for money at that point. They just know why they made that financial choice with Bitcoin.
And yes, Bitcoin is obviously a long-term investment; we've all emphasized that. If you're holding, keep holding; people are holding on to $100K, which isn't bad.