69,370 Bitcoins, valued at approximately $6.7 billion and originally seized by the U.S. government from the darknet marketplace Silk Road, have been released following approval by the U.S. Department of Justice (DoJ) to settle a long-standing dispute over Bitcoin ownership by Battle Born Investments. This move has sparked speculation among investors about whether another Bitcoin price drop below $90,000 might be imminent, as the asset’s value dipped under $93,000 today.
US Govt Liquidates Silk Road Bitcoin on US DoJ Authorization
According to previous reports from DB News, it was announced that the U.S. Department of Justice (DOJ) has given its approval for the sale of 69,370 Bitcoins that were confiscated from the Silk Road darknet market. The DOJ mentioned Bitcoin’s price instability as the reason behind allowing the U.S. government to convert these assets into cash.
Following the releases of the reports, it was found that the U.S. government’s account balance had depleted to nothing, having been $6.7 billion on January 8th, according to information from Arkham Intelligence.
As a crypto investor, I find it intriguing that the recent selloff occurred mere days before President Donald Trump moved into the White House on January 20. Despite whispers of plans within the Trump administration to establish a strategic Bitcoin reserve, the incoming Biden government has made an unexpected move to cash out Bitcoin.
As a crypto investor, I found it intriguing that just a fortnight into the new administration’s term, a federal judge made a ruling on December 30th, resolving a long-standing dispute over Bitcoin (BTC) ownership with Battle Born Investments. The investment firm had attempted to acquire BTC through a bankruptcy estate but was unsuccessful in their endeavor.
Battle Born’s legal team has fiercely condemned the decision, describing it as “yet another blatant misuse of the Civil Asset Forfeiture process by the DOJ.” They claim that the government used “underhand procedural tactics to ensure the facts remain unheard.
BTC Price Correction Under $90,000 Soon?
After being turned down at the $100,000 mark, Bitcoin’s price is currently undergoing significant selling activity, erasing all its weekly gains. At the moment of writing, Bitcoin is trading 2.47% lower at approximately $93,916 and has a market capitalization of around $1.86 trillion.
As a researcher, I’ve observed a significant decline in the resilience of Bitcoin’s price in the derivatives market. This observation is supported by the substantial drop in Bitcoin funding rates, according to the analysis by ShayanBTC at CryptoQuant.
During the latest surge in Bitcoin’s price, the Funding Rates displayed a marked uptick around the middle of the upward trajectory, indicating a late onslaught of demand. Yet, once Bitcoin encountered resistance at the $108K level, these Funding Rates plummeted dramatically.
Meanwhile, it appears that short-term traders are quickly transferring their assets to exchanges, seemingly due to a wave of selling in haste. According to the blockchain analysis, around 23,200 short-term investors have recently transferred their holdings to exchanges at a loss.
Short-Term Holders moved 23,200 $BTC to Exchanges at a Loss.
— Maartunn (@JA_Maartun) January 8, 2025
Top Leaders Continue to Remain Optimistic
However, popular leaders like Robert Kiyosaki stay bullish about BTC. He wrote:
Bitcoin experiencing a dip. Terrific! I’m still purchasing Bitcoin as a price drop signifies it’s on discount. Don’t forget the advice, “Buy low…and HODL.” Approximately 1.9 million more Bitcoins are yet to be mined.
In historical terms, the month following the halving event in January has been unpredictable for Bitcoin. Conversely, Arthur Hayes, a previous CEO of BitMEX, anticipates a massive $612 billion influx of liquidity in Q1 2025, which could potentially push Bitcoin to new record levels.
As an analyst, I find myself intrigued by El Salvador’s President, Nayib Bukele, who subtly suggested expanding their Bitcoin holdings following the U.S. government’s sale. His words echo with anticipation: “Perhaps we’ll all have an opportunity to acquire Bitcoin at a lower price!
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2025-01-09 08:58