- The U.S. government’s $6.7 billion liquidation of 69,370 seized Bitcoins from the Silk Road marketplace has sparked market volatility.
- While concerns of a price crash loom, bullish voices like Robert Kiyosaki and El Salvador’s Nayib Bukele view the dip as a buying opportunity, highlighting Bitcoin’s long-term potential.
The U.S government has been a force to reckon with when it comes to Cryptocurrency. Recent development have revealed that The U.S governement has liquidated 69, 370 Bitcoins worth approximately $6.7 billion. Notably, these assets were seized from the notorious Silk Road darknet marketplace and sold following authorization from the Department of Justice.
The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today
Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H
— db (@tier10k) January 9, 2025
Consecutively, this move has reignited fears of a potential Bitcoin price crash as the asset drops below the $94,000 mark.
At the time of press Bitcoin, the crypto titan is swapping hands with $93,922.14 after a 0.43% decline in the past 24 hours. Additionally, the digital asset has recorded a 2.79% decline in the past week.
Arkham Intelligence revealed that the DoJ’s approval to liquidate the seized Bitcoins came amidst concerns over Bitcoin’s price volatility. The assets were transferred out of the government wallet, reducing its balance to zero. The decision to sell follows a prolonged legal battle with Battle Born Investments, a firm claiming ownership of the assets through a bankruptcy estate.
While the DoJ framed the liquidation as a step toward resolving disputes, Battle Born’s legal team criticized the move, calling it a misuse of civil asset forfeiture laws. The firm’s attorney accused the government of “procedural trickery” to avoid a comprehensive legal review of the case.
The timing of this selloff has also sparked debate, occurring just days before a potential shift in U.S. Bitcoin policy under Donald Trump’s leadership. While Trump’s team has reportedly considered building a strategic Bitcoin reserve, the Biden administration opted for a quick liquidation.
CryptoQuant analyst ShayanBTC highlighted a drop in Bitcoin funding rates, reflecting a lack of confidence in the market. Additionally, on-chain data shows that short-term holders moved 23,200 BTC to exchanges at a loss, indicating heightened anxiety among traders.
A Divided Market Outlook
Despite the bearish short-term sentiment, prominent figures in the crypto space remain optimistic. Financial educator Robert Kiyosaki sees the dip as an opportunity to buy, reiterating his long-term bulli sh stance:
Bitcoin crashing means Bitcoin is on sale. Remember, ‘Buy low…and HODL.’
Similarly, El Salvador’s President Nayib Bukele hinted at adding more Bitcoins to the nation’s portfolio, suggesting that the selloff could present a buying opportunity.
Former BitMEX CEO Arthur Hayes is also optimistic, predicting a liquidity infusion in early 2025 that could propel Bitcoin to new highs. Historically, Bitcoin has experienced volatility in January following halving years, and some analysts believe this pattern will hold true.
