Bitcoin prices fall on fears the US government will sell more Silk Road cache

Bitcoin (Bitcoin-dollar) rose by about 3% on Thursday as traders reacted to reports that the US government had received final approval to sell a large amount of Bitcoin seized from the Silk Road dark web market.

Bitcoin reached $93,540 (£76,198) on Thursday, according to CoinGecko. Data. Wider Cryptocurrency The market also witnessed a decline, with the total market capitalization falling by 3.3% to $3.42 trillion.

Investors are concerned that the sale of the government’s bitcoin stock — worth about $6.5 billion — could lead to market volatility and impact cryptocurrency prices.

The US Department of Justice (DOJ) has reportedly received permission from the Northern District Court of California to liquidate 69,370 bitcoins, marking the end of a complex, multi-year legal battle over one of the largest cryptocurrency seizures in history, according to DeCrypt. news outlet.

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The court ruling was issued by Chief US District Judge Richard Seaborg, who rejected a request to prevent the confiscation of assets, according to the British newspaper “Daily Mail”. Court document Filed on December 30, 2024.

The court’s decision likely clears the way for the Justice Department to continue the sale, even though federal asset liquidations typically require multiple administrative steps. Historically, government agencies have implemented large asset divestitures gradually to avoid major market disruptions.

The decision comes at a politically sensitive time for government-owned crypto assets, as traders await the imminent arrival of Donald Trump’s crypto-friendly administration.

Bitcoin traders will be closely monitoring the US government Crypto wallet Activity is tracked through the Arkham Intelligence blockchain analytics platform. If bitcoin remains unsold before Trump’s inauguration on January 20, many cryptocurrency investors believe the sale will likely be blocked.

Read more: Bitcoin’s record high of $100,000 and what to expect from cryptocurrencies in 2025

Trump has previously suggested that his administration will take a hands-off approach to government-owned cryptocurrency assets. However, the current government still has the authority to initiate liquidation procedures.

Ryan Lee, senior analyst at Bitget Research, noted that widespread selling of Bitcoin, especially from government auctions, could create significant market volatility.

“Large-scale Bitcoin sales like this often lead to market volatility,” Lee said. “If the government sells bitcoin all at once, market sentiment could change dramatically, leading to a wave of selling and a temporary decline in the price of bitcoin.”

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