Analyst Soothes Hearts: Statement Made About Alleged Bitcoin to be Sold by the US!

After the US Department of Justice (DOJ) reported that it has obtained approval to liquidate approximately 69,370 BTC seized in the Silk Road case, the cryptocurrency market is being shaken by concerns about it.

However, market analyst James Van Straten argues that fears of Bitcoin's price having a dramatic impact may be exaggerated.

Van Straten, while the amount of Bitcoin in question is important, explained that any liquidation is likely to be carried out in a calculated and orderly manner to maximize returns. "If the Ministry of Justice were to sell this Bitcoin, it would likely be done in a way that minimizes disruption in the market."

Moreover, such a sales potential has been known by the market for a while, reducing the likelihood of a sudden shock. "The possibility of selling these Bitcoins may already be priced in by market expectations," he added.

Van Straten also emphasized the market's ability to absorb large amounts of Bitcoin. Since September, despite the decrease in positions of long-term holders (those who have held Bitcoin for more than 155 days), more than 1 million BTC has been absorbed by the market.

"Long-term holders currently own 13.1 million Bitcoins. Despite this change, Bitcoin's price has risen above $100,000 today from around $60,000 in September," said Van Straten, emphasizing the market's resilience.

To further support the Van Straten argument, it pointed to a similar situation in 2023 when the German government sold approximately 50,000 BTC worth 3.5 billion dollars at the time.

The market reacted before the sell-off and Bitcoin hit a bottom around $55,000 on July 7th. Interestingly, even after the sell-off, the German government held at least 25,000 BTC.