The US government has announced its plans to sell a significant portion of it his Bitcoin (BTC) holdings. This move has raised concerns in the crypto community considering how much selling pressure this could add The crypto market is already facing a challenge.
US government sells $130 million worth of Bitcoin
The Department of Justice (DOJ) announced its intention to divest over $130 million worth of Bitcoin. This Crypto assets are part of what the government forfeited in 2010 his case against Joseph Farace. The DOJ specifically noted that it had seized nearly 2875 BTC from Farace and Sean Bridges and another 58.7 BTC from Farace alone.
Farace, also known as the Xanaxman, had ties to the Silk Road as he pleaded guilty for the production and distribution of alprazolam Dark web marketplace. The Bitcoin he confiscated forms part of the over 69,369 BTC that the The US government is believed to have recovered as proceeds from Silk Road.
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A sale of this magnitude is concerning as it could have a significant impact on the price of Bitcoin and the overall crypto market. Furthermore, it comes at a time when the market is already under significant selling pressure from whales Grayscale, Celsius and FTX. However, it is worth noting that this sale planned by the government may not materialize soon.
In the notice, the DOJ also announced that any person other than the defendant who claims an interest in the forfeited property has 60 days to file their claim. Therefore, it is more than likely that the sale will not take place until after the 60-day period, which does not expire until sometime in March.
BTC price begins another recovery trend | Source: BTCUSD on Tradingview.com
The selling pressure could soon subside
The daily outflows that Grayscale’s GBTC has been facing recently suggest that Bitcoin selling pressure may soon ease. The Spot Bitcoin ETF has seen smaller outflows since then Bloomberg analyst James Seyffart I reported that The fund had $640 million The outflow occurs on January 22nd, the largest to date.
Since then GBTC has been said recorded outflows of $515 million, $429 million and $394 million on January 23, 24 and 25, respectively. If this proves to be a trend, the mutual fund bleeding should stop soon. This is also good news for the crypto market Grayscale will cool down if he deposits large amounts of Bitcoin daily.
At the time of writing, Bitcoin is only marginally traded over $40,000increased in the last 24 hours, loudly Data from CoinMarketCap.
Featured image from Coinmama, chart from Tradingview.com
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