The United States government has received clearance to sell $6.5 billion worth of Bitcoin seized from the Silk Road, a decision resulting from a December 30 court ruling. This action is part of the government’s Bitcoin reserves, which total approximately $18.5 billion. Analysts speculate that the Biden administration might sell the entirety of these holdings before Donald Trump assumes office, with some viewing it as a politically motivated move.
Jason Williams, a Fox Business contributor, suggests that selling Bitcoin during a bull market allows potential buybacks at higher prices. Bitcoin’s value dropped by 2.78% after the court’s decision due to fears that an auction could further pressure prices. However, historical data indicates that U.S. government auctions of Bitcoin typically have minimal long-term impact on the market.
Over previous months, while the government sold 38,000 BTC, Bitcoin’s price surged by 375%, boosted by demand for spot Bitcoin exchange-traded funds and Trump’s promise to add Bitcoin to the U.S. strategic reserve. The DOJ conducts sales through public auctions managed by the U.S. Marshals Service, which prevents direct impact on cryptocurrency exchanges.
Despite earning around $366.5 million from selling 195,092 BTC, the U.S. government has missed potential revenues of $17.9 billion at current Bitcoin valuations. Ki Young Ju, CEO of CryptoQuant, emphasizes that market capacity could absorb the additional Bitcoin sales without significant disruption, urging investors not to panic.
