Here’s how a potential $6.5 billion Bitcoin sale by the Department of Justice could impact Bitcoin prices

A recent report from CryptoQuant analyzes the potential impact of the pending $6.5 billion Bitcoin sales by the Department of Justice on prices.

Fears have filled the market about US Department of Justice (DoJ) approval. For sale 69,370 Bitcoin With a value of $6.5 billion. Notably, the US Department of Justice seized bitcoin from the Silk Road hacker in 2020, and the recent court order puts an end to a widespread battle over its ownership.

Amid the concerns, CryptoQuant has drawn attention to the current downward pressure Bitcoin priceThe token fell to $93,500 after a 13.5% decline All-time high of $108,000 In December 2024.

The Department of Justice has approved the sale of $6.5 billion worth of Bitcoin seized from Silk Road.

Here are 5 on-chain charts to navigate through the potential impact.

Let’s break it down 👇 pic.twitter.com/a5YeRUWhE3

— CryptoQuant.com (@cryptoquant_com) January 9, 2025

The platform confirmed that the decline represents the largest decline in 2025 and one of the most important corrections during the past three months. However, they revealed that the ongoing turmoil is not a direct result of the DOJ sale.

Despite the concerns surrounding the sale, CryptoQuant noted that Silk Road Bitcoin It remains unchanged for now. This begs the question: “So, what is the reason for the constant collapse?” The analysis points to short-term pressures, especially from short-term bondholders.

STH sells Bitcoin at a loss

Cryptoquant open That short-term holders of Bitcoin unloaded their assets at a loss. Within the last 24 hours alone, 36,400 BTC were transferred from these holders to exchanges, with the SOPR falling below 1.

This measure indicates that most of these currencies exist being Sell ​​them at lower than purchase prices. It is worth noting that selling activity highlights negative sentiment among short-term investors, who often react to bearish headlines and price corrections.

CryptoQuant reports that this trend has led to… Bitcoin SOPR It fell to 0.987, indicating increasing selling pressure from investors who have been holding Bitcoin for less than six months.

Long-term impact versus short-term impact

CryptoQuant confirms that although concerns remain regarding the potential $6.5 billion sale this The long-term effect may be limited. For context, over the past year, the realized value of Bitcoin has increased by $381.7 billion, dwarfing the value of Bitcoin on Silk Road of $6.5 billion.

How important is selling pressure from Silk Road coins?

In the long term; Very little.

Over the past 365 days, Bitcoin’s realized cap has risen by $381.7 billion, while potential selling pressure from US government Silk Road coins is “only” $6.5 billion. pic.twitter.com/YAV6V1v4pZ

— CryptoQuant.com (@cryptoquant_com) January 9, 2025

However, the concern is more pressing lies in How can the Department of Justice sell Bitcoin. An over-the-counter (OTC) transaction can reduce market turbulence, It also involves Private deals rather than exchange-based deals.

In contrast, selling through exchanges is likely to amplify price fluctuations, as evidenced by… German government sale worth 50,000 Bitcoin in mid-2024, which had a noticeable impact on the market.

Is it time to accumulate Bitcoin?

Meanwhile, in separate a reportCryptoQuant analyst MAC_D highlighted the selling trend among short-term holders, Who contributed To the continuous decline in prices.

According to him, when short-term holders sell at a loss, it indicates a shift towards accumulation by long-term investors. As the price of Bitcoin declines, experienced market participants often step in to buy discounted coins, potentially driving the recovery.

MAC_D highlighted several on-chain metrics that indicate this Bitcoin It has not yet reached the peak of its current cycle. The percentage of short-term investors, which currently stands at 60%, also supports the idea that the market is still in the accumulation phase.

MAC_D says that selling Bitcoin during this period may not be wise, as further declines could provide attractive entry points for savvy investors. The data suggests that the ongoing correction does not mean the end of Bitcoin’s broader bull cycle. Currently, Bitcoin is trading at $94,582, up 1.43% in the past 24 hours.