The US government plans to sell $118 million worth of Silk Road Bitcoin at auction, but market analysts predict that this won’t cause a ripple.
Bitcoin (BTC), valued at almost $118 million and confiscated in the Silk Road case, will be auctioned off by the US government. According to market watchers, this transaction shouldn’t make you nervous since it won’t have much of an effect compared to other crypto market activity recently.
The government’s intention to sell around 2,934 BTC was disclosed in a forfeiture notice that went viral on January 24 after being published on January 10. The sentence of Silk Road Xanax dealer Ryan Farace and his father, Joseph Farace, who were found guilty of money laundering conspiracy on January 8, followed this action.
There were concerns that the government’s sale might cause a massive “dump” of Bitcoin, but many industry insiders now think it would have little effect. “Peanuts, we have been eating GBTC sales 4x this for breakfast,” said Steven Lubka of Swan Bitcoin, a Bitcoin exchange, in reference to the government’s intentions and the recent withdrawals from the Grayscale Bitcoin Trust (GBTC).
Following its January 11 conversion to a spot Bitcoin exchange-traded fund, the GBTC has sold 106,575 BTC for a total of $4.2 billion. On January 24, 10,871 BTC were sold, marking the most recent outflow from GBTC. Investors’ ability to manage larger transactions is shown by this strong market activity.
The anticipated sale of US government Bitcoin barely accounts for 1.5% of the overall assets held by the US government. The government has an estimated 194,188 BTC, or almost $7.7 billion, according to data from crypto startup 21.co. But this doesn’t even come close to representing one percent of the total Bitcoin supply.
Also Read: Crypto trading will be offered by Bitpanda in collaboration with RLB NÖ-Wien
