Bitcoin News: US Government Could Soon Sell 69,000 BTC, Here’s Why

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As a seasoned crypto investor with a few battle scars to show for it, I can’t help but feel a sense of unease with the latest Bitcoin news about the potential sale of 69,000 BTC by the US government. My life experience has taught me that significant sell-offs like this can have a profound impact on the market, and given the current bullish sentiment, it’s hard not to worry.

Over the last few days, we’ve seen quite a bit of optimistic Bitcoin news. But a recent Supreme Court decision might change things, since the U.S. government now has permission to sell off approximately 69,370 Bitcoins linked to the Silk Road marketplace. This is substantial because such a large sale could potentially create intense selling pressure on Bitcoin, the leading cryptocurrency.

Bitcoin News: US Government Could Sell 69,000 BTC

It’s possible that the U.S. government might soon offload approximately 69,000 Bitcoins, following the Supreme Court’s rejection of a petition in the Battle Born Investments case. This development could potentially lower Bitcoin’s market price because a large sale like this would add substantial selling pressure to the cryptocurrency, particularly since Bitcoin is the leading digital currency.

In this instance, there was a dispute over 69,370 bitcoins (worth approximately $4.4 billion) that were originally taken by the authorities from an individual known as ‘Individual X’. These digital assets had been connected to transactions on the online black market, Silk Road Marketplace. The government had confiscated these coins during the forfeitures made from the dark web marketplace.

In 2022, the Northern District of California confiscated these coins. Battle Born Investments recently filed an appeal with the Supreme Court to regain possession of these coins, causing a temporary halt in their sale.

The company that acquired bankruptcy assets after the demise of Silk Road contended that they rightfully possessed the bitcoins that ‘Individual X’ allegedly stole from the online marketplace. Yet, the Supreme Court declined to consider Battle Born’s appeal, even though they asserted their claim as an innocent owner of Silk Road’s properties, which included the 69,370 BTC that were stolen by ‘Individual X’.

Supreme Court Order Gives The Government The Go-Ahead

In simpler terms, when the U.S. Supreme Court declined to review a lower court’s decision regarding the forfeiture of those coins in the Northern District of California, it effectively upheld that ruling. This means the law, as decided by the lower court, stands firm, allowing the government to proceed with selling the coins in question.

Although this Bitcoin news suggests a pessimistic future for the primary cryptocurrency, it’s important to note that there are procedures that organizations like the US Marshals Service or those aiming to liquidate these coins must adhere to before doing so.

In a different phrasing: While some might consider selling these confiscated Bitcoins, Democratic Representative Ro Khanna proposes that the U.S. government should retain them as strategic reserve assets instead. Even Republican presidential candidate Donald Trump has pledged to establish a Bitcoin strategic reserve if elected. Given the quantity of BTC currently held by the U.S. through seizures, it’s possible for Trump to follow Khanna’s advice and put this plan into action.

The data on Bitcoin reserves indicates that out of all global governments, the United States holds the most Bitcoins, approximately 203,239 units. Notably, a significant portion of these Bitcoins were originally acquired from the Silk Road digital marketplace.

If the U.S. decides to sell some Bitcoins, it might remind people of when the German government offloaded nearly 50,000 BTC between June and July this year. That sale caused the Bitcoin value to plummet under $55,000 at that moment.

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2024-10-07 21:56