Bitcoin (BTC) is facing a major challenge, as the U.S. Department of Justice recently received permission to sell a large chunk of approximately $69,000 worth of BTC seized from the Silk Road marketplace. What could be the potential impact of such a large sale?
The German government sold an even larger amount of BTC
As the Biden administration prepares to leave office, with new President Donald Trump set to take office on January 20, a major shift in the crypto world could be underway.
The Justice Department was recently given permission to sell a large chunk of approximately 69,370 BTC, which at current prices is equivalent to approximately $6.48 billion. This is even larger than the 50,000 BTC the German government sold in June and July 2024.
However, the DOJ is not expected to approve the sale in the same manner as the German government, which dumped a large chunk of BTC directly onto the market, selling the entire amount in just three weeks.
Instead, the U.S. Marshals Service will authorize Coinbase to execute the sale. Coinbase will likely sell BTC in an orderly manner via OTC, which is expected to have little impact on the spot Bitcoin price.
The current Bitcoin price drop may simply be a knee-jerk reaction to the news, rather than a market-wide sell-off. The news comes after the market was already down as strong jobs numbers strengthened the US dollar and pushed it higher, while sending risk assets in the opposite direction.