Analyst Relieves Concerns: Commenting on Bitcoins Allegedly to be Sold by the U.S.

The cryptocurrency market is awash with concerns after the US Department of Justice (DOJ) reported that it has received approval to liquidate 69,370 BTC worth approximately $6.5 billion seized in the Silk Road case. However, market analyst James Van Straten argues that fears of a dramatic impact on Bitcoin's price may be overblown. Van Straten explained that while the amount of Bitcoin involved is significant, any liquidation is likely to be conducted in a calculated and orderly manner to maximize returns. “If the Justice Department were to sell this Bitcoin, it would likely be done in a manner that minimizes market disruption,” he said. Moreover, the potential for such a sell-off has been known by the market for some time, reducing the likelihood of a sudden shock. “The possibility of these Bitcoins being sold may have already been priced in by market expectations,” he added. Related News: Will Solana Spot ETFs be Approved in the US? One of the Largest SOL Companies Commented Van Straten also highlighted the market’s ability to absorb large amounts of Bitcoin. Since September, more than 1 million BTC has been absorbed by the market, even as long-term holders (those who have held Bitcoin for more than 155 days) have reduced their positions. “Long-term holders currently own 13.1 million Bitcoins. Despite this change, the price of Bitcoin has risen from around $60,000 in September to over $100,000 today,” Van Straten said, emphasizing the resilience of the market. To further support his argument, Van Straten pointed to a similar situation in 2023 where the German government sold around 50,000 BTC worth $3.5 billion at the time. “The market reacted before the sell-off, with Bitcoin bottoming out at around $55,000 on July 7. Interestingly, even after the sell-off, the German government held on to at least 25,000 BTC,” he explained. *This is not investment advice. Continue Reading: Analyst Relieves Concerns: Commenting on Bitcoins Allegedly to be Sold by the U.S.