Prepare For Impact: US Government Will Dump $130 Million Worth Of Bitcoin
26 Januar 2024 - 6:00PM
NEWSBTC
The US government has revealed its plans to offload a significant
portion of its Bitcoin (BTC) holdings. This move has raised
concerns in the crypto community, considering how much selling
pressure this could add to what the crypto market is already
facing. US Government To Sell $130 Million Worth Of
Bitcoin The Department of Justice (DOJ) gave notice of its intent
to dispose of over $130 million worth of Bitcoin. These crypto
assets form part of what had been forfeited to the government in
its case against Joseph Farace. The DOJ specifically noted that it
had seized almost 2875 BTC from Farace and Sean Bridges and an
additional 58.7 BTC from Farace alone. Farace, also known as
the Xanaxman, had ties to the Silk Road as he pled guilty to
manufacturing and distributing alprazolam on the dark web
marketplace. The Bitcoin confiscated from him forms a portion of
the over 69,369 BTC, which the US government is believed to have
recovered as proceeds from Silk Road. Related Reading:
Bitcoin Whales Go On Buying Spree As Price Dips, Here’s How Much
They Bought A sale of such magnitude is concerning as it could have
a notable impact on Bitcoin’s price and the broader crypto market.
Moreover, it comes at a time when the market is already under
significant selling pressure from whales like Grayscale, Celsius,
and FTX. However, it is worth noting that this proposed sale by the
government might not happen anytime soon. In the notice, the
DOJ also announced that any other person aside from the defendant
claiming an interest in the forfeited property had 60 days to come
forward with its claims. As such, it is more than likely that the
sale will not occur until the expiration of the 60-day period,
which doesn’t lapse until sometime in March. BTC price begins
another recovery trend | Source: BTCUSD on Tradingview.com Selling
Pressure Might Soon Cool Off The daily outflows that Grayscale’s
GBTC has faced recently suggest that the Bitcoin selling pressure
might soon cool off. The Spot Bitcoin ETF has seen lower outflows
since Bloomberg analyst James Seyffart reported that the fund saw
$640 million flow out on January 22, its largest yet. Related
Reading: Cardano Defies Bear Market As Smart Contracts Count Sees
10,000 Explosion Since then, GBTC is said to have 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
investment fund is expected to stop bleeding soon enough. That also
spells good news for the crypto market as Grayscale will cool off
on offloading large sums of Bitcoin daily. At the time of
writing, Bitcoin is trading just a little above $40,000, up in the
last 24 hours, according to data from CoinMarketCap. Featured
image from Coinmama, chart from Tradingview.com
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