In the last 24 hours, the price of Bitcoin has dropped following a brief surge above $100,000. This downward trend caused Bitcoin to fall below $95,000 once more. However, a recent market update in the crypto world suggests that this decline could continue. As per recent news, a U.S. District Judge has given permission for the U.S. Department of Justice to sell its Bitcoins, which were seized during the Silk Road case. The potential sale of these Bitcoins raises questions about their influence on Bitcoin’s price trend.
Greenlight To Liquidate Silk Road BTC
The Bitcoins under discussion were taken by the United States Department of Justice during their operation against Silk Road, an infamous online black market. These Bitcoin, totalling 69,370 units at present, were confiscated as early as 2013 and have since significantly increased in value. Presently, the DOJ’s holding of 69,370 Bitcoins is worth over $6.58 billion.
Based on a report from DB News and confirmation by a U.S. government official, it has been authorized for the DOJ to seize and sell Bitcoin worth approximately $6.58 billion. This authorization comes after a year-long legal battle between the U.S. government and Battle Born Investments Company over ownership rights, which was resolved when Judge Richard Seeborg denied Battle Born’s request to postpone the sale. Remarkably, court documents reveal that this decision was made on December 30, 2024.
Bitcoin Price Crash Imminent?
If the Department of Justice (DOJ) may potentially sell its Bitcoin reserves soon, there’s worry about how this could influence the Bitcoin market value. Given the considerable worth of their holdings, a sudden release might oversupply the market with more Bitcoins, intensifying the existing downward pressure on Bitcoin prices that are already having difficulty staying above $100,000. A case in point is when the German state Saxony sold 40,000 BTC in mid-2024, which caused a drop in the Bitcoin price from around $70,000 to $56,000.
If the Department of Justice (DOJ) were to sell its holdings, the market response would significantly depend on the method used for liquidation. Additionally, there’s speculation that the DOJ might rush the sale process given the incoming change in administration towards the end of January.
Regarding the upcoming administration, there’s an optimistic outlook towards cryptocurrencies, particularly Bitcoin, from the new Trump administration, even hinting at a possible Bitcoin reserve. This positive stance towards crypto is helping to alleviate concerns about the DOJ liquidating the seized 69,370 BTC from Silk Road. However, it’s important to remember that Bitcoin has shown resilience in the face of sell-offs in the past, such as during Germany’s Saxony sale, so it could potentially handle a similar event.
At the time of writing, Bitcoin is trading at $94,300.
Read More
- EUR CAD PREDICTION
- EUR MYR PREDICTION
- VANRY PREDICTION. VANRY cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- XRP PREDICTION. XRP cryptocurrency
- GBP RUB PREDICTION
- OKB PREDICTION. OKB cryptocurrency
- POL PREDICTION. POL cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- USD BRL PREDICTION
2025-01-09 21:11