us government revealed plans to offload a significant portion of Bitcoin (BTC) holdings. This move has caused concern in the crypto community given how much selling pressure this could put on the value of cryptocurrencies. The virtual currency market is already facing.
US government to sell $130 million worth of Bitcoin
The Department of Justice (DOJ) has issued a notice of intent to divest more than $130 million worth of Bitcoin.these crypto assets form part of what was confiscated by the government in Lawsuit against Joseph Fares. The Department of Justice specifically noted that it seized approximately 2,875 BTC from Farace and Sean Bridges, and an additional 58.7 BTC from Farace alone.
Fares, also known as the Xanax Man, Silk road as he pleaded guilty Towards the production and sale of alprazolam dark web marketplace. The Bitcoins seized from him form part of more than 69,369 BTC. the US government believes It is thought that it was collected as revenue from the Silk Road.
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A selloff of this magnitude is concerning because it could have a noticeable impact on the price of Bitcoin and the broader cryptocurrency market. Moreover, it comes at a time when the market is already under significant selling pressure from whales. Grayscale, Celsius, FTX. However, it is worth noting that this proposed sale by the government may not happen soon.
In a notice, the Department of Justice announced that anyone claiming an interest in confiscated property other than the defendants has 60 days to file their claim. As such, the sale will likely not occur until the expiry of the 60-day period, which does not expire until sometime in March.
BTC price begins another recovery trend | Source: BTCUSD on Tradingview.com
Selling pressure may cool down soon
The daily outflows that Grayscale’s GBTC has been facing recently suggests that Bitcoin selling pressure may cool down soon. The Spot Bitcoin ETF has seen declining outflows since then. Bloomberg analyst James Seifert reported that The fund raised $640 million. On January 22nd, the largest outflow on record occurred.
Since then, GBTC has Said On January 23, 24, and 25, there were outflows of $515 million, $429 million, and $394 million, respectively. If this becomes a trend, the hemorrhage of investment funds is expected to stop soon. This is also good news for the virtual currency market. grayscale Offloading large amounts of Bitcoin every day will cool things down.
At the time of this writing, Bitcoin is trading slightly Over $40,000Increased in the last 24 hours according to data From CoinMarketCap.
Featured image from Coinmama, chart from Tradingview.com