$BTC

Reasons for Bitcoin’s Fall 🥹

On December 30, 2024, a federal judge approved the US Department of Justice’s request to sell 69,370 bitcoins, worth an estimated $6.5 billion, seized from the illegal Silk Road online marketplace. 

The DOJ did not issue an official statement immediately after the approval. The document was revealed in the first week of January 2025, raising questions about the reason for the delay in announcing the announcement. This is not the first time that the sale of confiscated bitcoins has been announced after the sale was executed; in 2023, the sale of an initial batch of 9,800 bitcoins was announced after the sale had already been completed.

As for the transfers that took place on January 8, 2025, some reports indicate that there were significant movements in bitcoins related to the case, raising speculation as to whether these transfers were related to the aforementioned sale. However, this has not yet been officially confirmed.

It is worth noting that such large moves in Bitcoin can have an impact on the market, for example, El Salvador’s President Nayib Bukele commented on the news saying that the sale of Bitcoin related to the “Silk Road” case could provide an opportunity to buy Bitcoin at lower prices. 

Finally, while the approval to sell the confiscated Bitcoin has been confirmed, there are still some unclear details about the timing of the announcement and the recent transfers.