The US government has revealed its plans to divest a significant portion of bitcoin-holdings/” rel=”nofollow”>your bitcoin (btc) holdings. This move has sparked concern in the crypto community, considering how much selling pressure this could add to what the bitcoin-price-crashed-below-40000/” rel=”nofollow”>The crypto market is already facing..
The US government will sell bitcoin worth $130 million
The Department of Justice (DOJ) notified its intention to dispose of more than $130 million in bitcoin. These crypto-bag-grew-in-4-months/” rel=”nofollow”>cryptoassets They were part of what had been confiscated from the government in bitcoin-seized-in-dark-web-undercover-sting-operation/” rel=”nofollow”>his case against Joseph Farace. The DOJ specifically noted that it had seized nearly 2,875 btc from Farace and Sean Bridges and an additional 58.7 btc from Farace alone.
Farace, also known as Xanaxman, had ties to the Silk Road as pleaded guilty to manufacture and distribute alprazolam in the bitcoin/” rel=”nofollow”>dark web market. The bitcoin that was confiscated is part of the more than 69,369 btc, which the bitcoin-holdings/” rel=”nofollow”>It is believed that the US government have been recovered as a product of Silk Road.
Related Reading: bitcoin Whales Continue Buying As Prices Fall, Here's What They Bought
A sale of such magnitude is worrying as it could have a notable impact on the price of bitcoin and the crypto market in general. Furthermore, it comes at a time when the market is already under significant selling pressure from whales like Grayscale, Celsius and FTX. However, it's worth noting that this proposed government sale might not happen anytime soon.
In the notice, the DOJ also announced that anyone other than the defendant claiming an interest in the seized property had 60 days to file their claims. Therefore, it is more than likely that the sale will not occur until the 60-day period expires, which is not until March.
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/US-Government-to-Get-Rid-of-130-Million-in-Bitcoin" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″/>
btc price begins another recovery trend | Source: BTCUSD on Tradingview.com
Selling pressure could cool soon
The daily outflows that Grayscale's GBTC has faced recently suggest that bitcoin selling pressure could cool soon. The Spot bitcoin ETF has seen lower outflows since James Seyffart, Bloomberg analyst reported that bitcoin-price-crashed-below-40000/” rel=”nofollow”>The fund obtained 640 million dollars The stream will be out on January 22, the largest yet.
Since then, GBTC is saying having seen outflows of $515 million, $429 million and $394 million on January 23, 24 and 25, respectively. If this turns out to be a trend, then the mutual fund is expected to stop bleeding soon enough. That also means good news for the cryptocurrency market, as bitcoin-etf-imminent/” rel=”nofollow”>Grayscale It will cool down when downloading large sums of bitcoin daily.
At the time of writing, bitcoin is trading just a little. bitcoin-price-crashed-below-40000/” rel=”nofollow”>above $40,000increasing in the last 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
Featured image from Coinmama, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
