Emily Walker
In the last 24 hours, the Bitcoin price has experienced a drop after briefly surpassing the $100,000 level. Now trading below $95,000, the cryptocurrency faces additional pressure following a significant market update. Reports indicate that a US District Judge has permitted the US Department of Justice to liquidate its Bitcoin assets that were confiscated during the notorious Silk Road case. This decision raises concerns regarding the potential influence on Bitcoin’s price dynamics.
Approval to Sell Silk Road Bitcoin
The Bitcoins involved were taken by the US DOJ under its operation against Silk Road, a well-known darknet platform. Currently comprising 69,370 BTC, these assets, seized in 2013, have significantly increased in value, now totaling over $6.58 billion.
Per a DB News report backed by a US official, the DOJ is authorized to liquidate this massive Bitcoin holding. This decision follows the resolution of a lengthy ownership dispute with Battle Born Investments Company, which ended when Chief U.S. District Judge Richard Seeborg denied their request to delay the sale. Notably, court records show this ruling occurred on December 30, 2024.
Is a Bitcoin Price Crash on the Horizon?
Despite limited information from government sources on the immediate plans for selling these Bitcoin assets, the potential for such a sale raises worries about its implications for Bitcoin’s value. If the DOJ moves forward with the liquidation, it could potentially introduce a large amount of Bitcoin onto the market, increasing the selling pressure on a price that’s already below $100,000. An instance of this was seen in mid-2024 when Saxony, a German state, sold 40,000 BTC, causing Bitcoin’s value to drop from over $70,000 to $56,000.
The impact on the market from a potential DOJ sale largely depends on how it is executed. There’s also the likelihood of a rapid sale before the new administration takes office at the end of January.
Nonetheless, the incoming Trump administration is expected to adopt a crypto-friendly approach, including discussions of a Bitcoin reserve, which may alleviate concerns about the DOJ’s liquidation of the 69,370 BTC. However, Bitcoin might still endure a selloff if it occurs, similar to the situation during Saxony’s sale.
As of this moment, Bitcoin’s current trading price is $94,300.