$BTC
The massive Bitcoin sell-off by the US Department of Justice (DOJ) as explained could have a significant impact on the Bitcoin price in the market:
Selling Pressure in the Market
If 69,370 BTC were sold all at once or in large quantities on open exchanges, this could create selling pressure, causing the Bitcoin price to drop in the short term as the market may not be able to absorb this large volume quickly.
Negative Market Sentiment
Market participants often view large sell-offs by governments or institutions as bearish signals, which can exacerbate negative sentiment and encourage more people to sell their assets.
Price Volatility
Sales on a large scale can increase the volatility of the Bitcoin price. The price can move up and down drastically depending on how the market absorbs the sale.
Temporary Drop Followed by Recovery
In many previous cases, the price drop due to large government sell-offs was only temporary, as the crypto market tends to recover after the large volume is finished being sold.
If the DOJ chooses to sell the Bitcoin in stages or through an auction method (as is typical in sales of seized assets), the impact on prices may be more contained.
