Experts remain calm as the United States prepares to sell $118 million worth of Bitcoin on Silk Road. They point out that this amount pales in comparison to Grayscale sales and the cumulative holdings of the United States.
The United States government intends to sell $118 million worth of Bitcoin that was stolen from Silk Road, yet no one is bothered about this. After Ryan Farace and his father were sentenced for money laundering, they are now selling 2,934 BTC.
There was concern that this sale may cause Bitcoin’s price to fall. However, Swan Bitcoin’s Steven Lubka believes that it pales in comparison to the recent sales of Grayscale Bitcoin Trust, which sold 106,575 BTC, worth $4.2 billion, since becoming a spot Bitcoin ETF.
But even when broken down by total Bitcoin held, the government sell represents a pitiful 1.5% of their 194,188 BTC holdings—far less than one percent of the cryptocurrency’s supply. They procured some from hacker James Zhong, some from Silk Road, and the Bitcoins stolen from Bitfinex.
This batch is part of a larger 41,000 BTC sale scheduled for 2023; the United States often holds auctions for the Bitcoins during these sales. Tim Draper’s 2014 acquisition of thirty thousand bitcoins (BTC) in the US government auction is one such case. With 9,118 BTC traded on exchanges in March 2023, it seems that people are favoring this method of selling recently.
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