Microstrategy is quite different from the Germany government.
Microstrategy represent a movement and has been a supporter of Bitcoin
The CEO has stated he plans on not selling his Bitcoin
Now if such group chooses to sell?
The gap wouldn't be on just the quantity that's been offloaded in the market
But fear of what such action could represent.

Like you said, A temporary dip and the market would fill in the Gap.
That's the disadvantage of last institutions owning Bitcoin
Their action could cause a ripple effect on Bitcoin price.

You are not overthinking when a company holds the amount of bitcoin that is above half a million bitcoin; it leaves the people with curiosity, some questions about safety, and the rest of them.

No one is buying bitcoin to store it permanently; they will eventually sell it off someday, which is one thing we should prepare our minds for.

And if they are to sell with the position they hold, that will have a negative reaction on the market, but it will just be temporary, which is still not a bad thing, as that will be considered an ownership change since it will then be going down to others' private investors' hands.

I think its really implausible they could just DUMP all coins in the same moment since markets could just collapse (and probably there are many orders in few exchanges...)
I would not discuss this scenario since it's really "impossible to see".
For sure we will see another BEAR WHALE at latest
https://news.bitcoin.com/8-years-ago-today-bitcoin-traders-slayed-the-infamous-bear-whale-who-dumped-30000-btc-in-a-single-trade/
For sure the whole market could react in a very negative way since there is a reason if they will ever decide to dump their coins...

You forget about emotional and psychological impacts from Strategy's purchases and sales.

If their purchases can lift the market and price up by positive psychological impacts, you must think of opposite impacts from their sales in future if they actually sell. The question is more severe as it is about dumps, not simply normal sales.

If you understand their business, they don't  have to sell their bitcoins even if price falls down and below their average entry price. So no reasons either intentionally or unexpectedly for Steategy to sell their bitcoin.

Op might be right to think in that direction but another consideration is that will microstrategy dumps all it's Bitcoin forever or they are dumping to buy back? This are the other things to consider before having such assumptions of what will happens to Bitcoin if in that regards regards, Bitcoin will keep being Bitcoin no matter what and it is already known for it's volatility to be influence by various factors which of course is of the basic things we should be aware of and good enough that you have vividly started it out that if such thing happens there will be hand change of position and possession which is true.

Bitcoin isn’t tied to just one person or entity bitcoin is decentralized coin even when bitcoin started there was a blackish by Michael Saylor the CEO of Microstrategy himself, he was actually fudding bitcoin then with statements like “bitcoin days are numbered” but still bitcoin stood its ground and actually got past this period which signifies bitcoin can withstand anything coming up coming up now with more support.

But let’s be realistic Microstrategy dumping bitcoin will definitely will be felt in the market. Just like you have said he holds Above 500,000 bitcoins which is definitely equivalent to around $50billion that’s is not a push over figure no matter how we put it. Should they decide to dump all it will definitely affect the market and price effect will be affected for some days or even few months, the reason of why they are selling will also be significant to the market but what I know is even if it takes a year it will be temporary and bitcoin will be back again. But we will most surely touch some low price because this sell off will definitely affect the market sentiment and many other weak hands will also sell off, so the impact will definitely be noticed

It's not overthinking, it will happens some day.
But now once again, Strategy acquired 1,895 BTC for $180.3 million at a price of $95,167 per bitcoin and achieved a BTC yield of 14% since the beginning of 2025.
As of 05/04/2025, the company's balance sheet is 555,450 BTC acquired for $38.08 billion at an average price of $68,550.
Small volume this time .
That's why Strategy shares have grown so much.
Sailor is in no hurry to get cash.
And perhaps he is waiting for a higher BTC rate, although I don't remember him naming any specific values ​​​​about what price he is expecting. But given how he bought even at the peaks of the price, he is expecting some huge values ​​​​of the Bitcoin price.

I’m sure in the future they will sell their Bitcoin because that’s the goal of their investment. There’s nothing new to this but we shouldn’t afraid on this because they will do it gradually or else they will be affected too on the sudden price dip since their Bitcoin holdings can dump the exchange due to liquidity issue.

It’s realistic that they will sell but the effect is not that brutal because there’s always someone that will purchase their holdings. Most probably their sales is OTC that doesn’t affect the market price.

It can be noticed because there's always someone who track the coins hold by entities or big holders, as we can see in arkham intelligence https://intel.arkm.com/explorer/entity/microstrategy

The effect of selling all the coins would be tiny, but effect of the market and people who invest Bitcoin because of big entities could be big, they would feel encouraged to sell their holdings.

But yeah, it's all just a short term effect.