The U.S. Supreme Court has declined to review a case over the ownership of 69,370 Bitcoins worth an estimated $4.38 billion that the government seized from the Silk Road dark web marketplace.

Background to the Case

Battle Born Investments claimed to have purchased the cryptocurrencies through the bankruptcy estate. However, a district court in 2022 and an appeals court in 2023 rejected those claims. A San Francisco appeals judge dismissed the case, stating that Battle Born did not have a valid claim to the bitcoins.

This decision ensures that the lower court rulings remain in effect and increases the likelihood that the U.S. government will successfully pursue civil forfeiture proceedings. The government is holding approximately $2 billion worth of BTC through Coinbase Prime in connection with the Silk Road case.

Market Impacts

Government sales of Bitcoin can create sudden selling pressure in the crypto market, causing price volatility. Historically, large government sales of Bitcoin have caused instability in the crypto market, such as the German government's sale in mid-2024, which sent the BTC price below $60,000.

Bitcoin opened with an 8% correction in October. However, the coin has resumed an uptrend in the past week and is currently trading at around $62,305.

The US government is preparing to launch a $4.33 billion Bitcoin sale. This sale could have a significant impact on the market and has been seen to cause significant price swings following similar sales in the past.

Republican presidential candidate Donald Trump has proposed the creation of a Bitcoin strategic reserve if he wins the election. This proposal illustrates the government’s approach to Bitcoin management.

The government’s massive sell-off in the Bitcoin market is expected to cause volatility in the future. Investors should determine their strategies by considering how such transactions will affect market balances.

  • The US Supreme Court has not reviewed the major Bitcoin case.

  • The government plans to sell the seized Bitcoins.

  • Government sales have caused volatility in the crypto market in the past.