The news about the U.S. The Department of Justice (DOJ) selling $6.5 billion worth of Bitcoin seized from the Silk Road likely has the following potential effects on Bitcoin's price:
Short-term Impact:
Bearish Pressure: The announcement of a large Bitcoin sale, especially by a government, typically causes fear of oversupply in the market. This could lead to a short-term drop in Bitcoin's price as traders anticipate the market's ability to absorb such a large quantity of BTC.
Long-term Impact:
Neutral or Recovery: If the sale is executed gradually or through private institutions instead of dumping on exchanges, the long-term effect on price might be minimal. Bitcoin has shown resilience to similar events in the past
