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.
Even if it was as of result of dump something I am very sure that they don't believe that Bitcoin will surge like this because if they knew I'm 100 percent sure and certain that they wouldn't have sell it out even though it was a seized asset and want to get over it and I also believed that the state is or will be regretting now seeing this value of Bitcoin and the profit they would have make if they waited till today. Well to me I will take this as a lesson learnt not to sell my Bitcoin regardless provided there's no challenge.