I don't know, but I feel like the government just want to control the mass. From what I know, they've been trying to control Bitcoin ever since day one but since it's decentralized, then they know they can't.
This might just be a turn around for them as if they buy and reserve bigger portions of Bitcoin, they can then control it using price. Maybe sell off when ever they wish which in return would cause a very big dump in the market, scaring out the little investors to sell off much quicker.
I think buying Bitcoin could be strategy develop by the government to try and control Bitcoin since there seems to be no way to do that, thanks to Satoshi for making sure of that. I don't think they will succeed with such plan but when other countries join too and they are able to get a bigger portion it's would definitely increase the price of it and will draw in new investors which would be a win also but in the long run would definitely have effect because I think the government is just looking for a way to take over and scare investors away from it. They have always been against Bitcoin that's why I doubt their intentions.
Since the coming of bitcoin ETF and even institutional investors like Microstrategy have there been any manipulation when this people buy? I don’t it has affected the market much. When this people buy yes there is a spike in the market but most often it doesn’t affect market for long. That’s why even though we hear everyday about ETFs buying chunk of it everyday the market doesn’t move like that. The only time I think the government involvement will affect the market more is when they actually put out a policy that affects the investors sentiment
You have point, since the approval of Bitcoin ETF the effect they have on the market is actually lesser than we imagined and it doesn't lasts longer but I doubt if that of the government will be the same. You said it also, no one is restricted from purchasing the asset so if the government wants to buy in let's just hope their intentions are positive because there is nothing we can do about it.