- DOJ has reportedly approved the sale of seized 69K BTC, which Trump planned to repurpose for strategic reserve.
- No seized BTC had been moved from key wallets as of this writing.
There’s a lot of buzz on social media platform Crypto Twitter about rumors suggesting that the U.S. Department of Justice gave approval for the sale of approximately 69,000 Bitcoins (worth around $6.5 billion) which were previously seized from Silk Road.
The update was first shared by media publisher DB News, citing a U.S. official.
In an X (formerly Twitter) post dated the 9th of January, the publisher stated,
A U.S. government representative has announced that they have been authorized to sell off approximately 69,000 Bitcoins (worth around $6.5 billion) seized from Silk Road. This revelation was made to DB News today. It’s an intriguing development as the new administration, who pledged not to sell these assets, will take office in less than two weeks.
What’s next for U.S. BTC strategic reserve?
Changes in market sentiment are often influenced when new information about the U.S. government’s actions regarding Bitcoin comes to light.
Since President-elect Donald Trump had promised to establish a U.S. Bitcoin Strategic Reserve (SBR) from confiscated Bitcoins, any future moves related to this are under increased examination by the financial markets.
Some individuals within the community hypothesized that the Bitcoin (BTC) taken was possibly already cashed out using a ‘credit facility.’ One user asserted this theory.
The Bitcoin designated for a ‘strategic reserve’ during the Trump administration has already been sold. This action was authorized via a credit line approved by Coinbase.
In other words, some people labeled the update as fear, uncertainty, and doubt (FUD), but at the moment of reporting, the data from Arkham did not indicate a decrease in the balance of wallets connected to the confiscated Bitcoin.
If accurate, the sale might be completed prior to Donald Trump’s inauguration as president. Some Bitcoin analysts suggest that this wouldn’t significantly derail Bitcoin’s trajectory.
The creators behind Glassnode made it clear that the sale they’re referring to will not occur via cryptocurrency exchanges, instead taking place in over-the-counter (OTC) trading platforms. Consequently, this action is unlikely to impact Bitcoin as the dominant currency.
In response, Ki Young Ju, the founder of CryptoQuant, sought to alleviate concerns, emphasizing that the estimated $6.5 billion in sell-offs might be manageable for the market without causing significant disruption.
In the previous year, approximately 1 billion dollars flowed into the market every day, totaling around $379 billion based on realized capitalization. This means that if the U.S. government were to sell $6.5 billion, it could be easily absorbed within a week’s time. So, there’s no need for alarm.
As an analyst, I’ve observed that platforms such as Polymarket and Kalshi assign approximately a 40% likelihood for the establishment of a U.S. Bitcoin strategic reserve by 2025.
Initially, there was a 34% chance that event would occur within the first 100 days of the new administration. Yet, as we speak, that probability has dropped to 27%.
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2025-01-09 22:15