Market intelligence firm IntoTheBlock says the Bitcoin (BTC) market can absorb the US Department of Justice (DOJ) plan to liquidate billions of dollars in assets without any problems.
In a new article, IntoTheBlock says the government will sell $6.5 billion worth of BTC linked to the Silk Road, a defunct online black market that was shut down more than a decade ago.
“The US Department of Justice (DOJ) is about to make a major move in the market, potentially shaking things up with the sale of a large chunk of Bitcoin. These funds are directly linked to the infamous Silk Road, the dark web marketplace that was shut down in 2013 for its role in facilitating illegal transactions.”
According to IntoTheBlock, massive BTC sales in the past have negatively affected Bitcoin’s price. This time, however, the crypto analytics platform expects the market to simply absorb the selling pressure without any major setbacks.
“In the past, significant Bitcoin sales by the government have caused notable market fluctuations. With this substantial volume entering the market, traders are on high alert for a possible decline in Bitcoin’s value.
This sale, which has not yet occurred, appears manageable for the Bitcoin market, which regularly handles daily trading volumes of tens of billions of dollars. While the DOJ’s planned liquidation represents a significant amount of Bitcoin, the market could absorb this selling pressure without major disruption.”
The crypto king is trading at $94,341 at the time of writing, a marginal value over the past 24 hours.
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