Concerns Over U.S. Silk Road Bitcoin Sale Overblown... Market Can Absorb

YM Lee

Summary

It was stated that concerns in the market are excessive following the U.S. Department of Justice's approval to sell Bitcoin worth $6.5 billion seized from Silk Road.
Even if the Department of Justice sells a large amount of Bitcoin, an orderly sale will be conducted, and it will not cause a significant shock to the market.
The market has experience absorbing over 1 million BTC since last September, so the Silk Road volume is not expected to have a major impact.

It has been suggested that concerns in the market are excessive following the U.S. Department of Justice's approval to sell Bitcoin (BTC) worth $6.5 billion seized from Silk Road.

On the 9th (local time), cryptocurrency specialist media CoinDesk reported, "While fears of selling pressure continue as it is known that the U.S. Department of Justice has been authorized to liquidate 69,370 BTC (approximately $6.5 billion) seized from the Silk Road market, these concerns seem to be overblown."

CoinDesk explained that even if the Department of Justice sells a large amount of Bitcoin on the market, an orderly sale will be conducted to ensure proper pricing, and since the market has absorbed over 1 million BTC since last September, the Silk Road volume alone will not cause a significant shock. In fact, when the German government sold 50,000 BTC in June 2023, it did not have a major impact on the market.

BTC