The U.S. government is about to sell $6.5 billion worth of Bitcoin (BTC-USD) seized from the Silk Road, and some are concerned it could sink the price. The Department of Justice (DOJ) will auction off part of the 198,000 BTC currently held by the government after a long legal battle. With Bitcoin priced at around $94,000, the timing of the sale has sparked speculations that this could apply downward pressure on the market.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Will the Sale Impact Bitcoin’s Price?
Despite the potential for market disruption, history suggests these sales usually don’t have lasting effects. In fact, Bitcoin’s price surged 375% after the government sold off 38,000 BTC in 2023, according to Glassnode co-founders. Jason Williams, a Fox Business contributor, sees the sale as politically motivated, arguing that the Biden administration may be selling now to prevent Trump from buying it back at higher prices.
Market Can Absorb the Sale
If the government had held onto its Bitcoin longer, it could have made an extra $17.9 billion, as pointed out by Ki Young Ju, CEO of CryptoQuant. However, experts like him believe the market can absorb the sale, and there’s no need to panic.
At the time of writing, Bitcoin is sitting at $93,407.50.
