Jan 9, 2025
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Market Concerns Over DOJ’s Potential BTC Liquidation May Be Exaggerated
Bitcoin (BTC) recently fell to $92,000, raising concerns about the potential end of its bull run. Key points include:
- The U.S. Department of Justice may liquidate 69,370 BTC ($6.5 billion) seized from the Silk Road marketplace.
- President-elect Donald Trump committed to not selling the remaining 187,236 BTC held by the government.
- The market has absorbed over 1 million BTC since September, with long-term holders now retaining 13.1 million BTC.
- Historical data shows that a similar sale by the German government of 50,000 BTC did not significantly impact market prices, which suggests current fears may be overstated.
Market dynamics indicate that the prospect of liquidation may already be priced in, as observed in past government sales.
