Crypto Crash Imminent As US DOJ Sells Over 69K BTC
According to CoinGecko, the crypto market dropped 5% this week, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) seeing significant declines.
The Silk Road Incident
The downturn follows the U.S. Department of Justice (DOJ) receiving approval to sell 69,370 BTC seized via the Silk Road darknet marketplace. In 2013, the FBI seized all Silk Road assets, including a colossal amount of Bitcoin.
Valued at around $6.5 billion, this Bitcoin stash has been tied up in several lengthy legal battles, with the U.S. government initially auctioning off some of it. Battle Born Investments tried to block the sale, but its claims were officially dismissed through a recent court ruling on December 30th.
Politically Motivated
A federal judge authorized the DOJ to sell the crypto, citing concerns over potential losses if held too long. The sale, managed by the U.S. Marshals Service, could become one of the largest crypto liquidations in history. Analysts worry this liquidation could adversely affect Bitcoin and possibly trigger a market crash.
Some, like crypto user DefiBanked, speculate that the decision by the DOJ might have political motives, with proceeds potentially supporting Ukraine and a move to suppress crypto entirely. Others fear it could be a tactic to manipulate the market and thwart Donald Trump and his Bitcoin reserve plans.
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