Bitcoin Price Dips as Concerns Rise Over US Government’s Silk Road Bitcoin Sale
Bitcoin’s value dropped 3% amid fears of a US government bitcoin sale from Silk Road
Bitcoin, Silk Road, US Government, Cryptocurrency, Market Volatility
San Francisco: Bitcoin took a hit on Thursday, dropping about 3%. Traders were reacting to news that the US government might sell off a big stash of bitcoin seized from the Silk Road marketplace.
According to CoinGecko, Bitcoin was priced at $93,540 (£76,198) that day. The whole crypto market wasn’t looking great either, with a 3.3% drop in total market cap, bringing it down to $3.42 trillion.
Investors are understandably anxious. The government’s bitcoin stash is worth around $6.5 billion, and a sale could shake things up in the market.
Reports say the US Department of Justice got the green light from a California court to sell 69,370 bitcoins. This marks the end of a long legal battle over one of the biggest cryptocurrency seizures ever.
The court ruling came from Chief US District Judge Richard Seeborg, who turned down a request to stop the asset forfeiture. This decision could pave the way for the DOJ to move forward with the sale, but there are still a few steps to go through.
It’s a tricky time for government-held crypto assets, especially with Donald Trump’s crypto-friendly administration on the horizon. Traders are keeping a close eye on the government’s crypto wallet activity, hoping the bitcoins don’t get sold before Trump takes office on January 20.
Trump has hinted that his administration might take a more relaxed approach to government-held crypto. Still, the current government can kick off the liquidation process anytime.
Ryan Lee, a chief analyst at Bitget Research, pointed out that a big sale of bitcoin could really stir the market. He mentioned that if the government dumps all the bitcoin at once, it could lead to a lot of selling and a quick drop in prices.
But Lee also noted that if the bitcoins are sold gradually, the market might handle it better. With more institutional investors and hedge funds in the game, they could absorb the sales without too much fuss.
[rule_2]