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US to sell $4.3 billion in seized Bitcoin assets

US to sell $4.3 billion in seized Bitcoin assets

Grafa2024/10/09 08:00
By: Liezl Gambe
BTC-0.40%

The U.S. government is preparing to sell 69,370 Bitcoin (CRYPTO:BTC), worth approximately $4.3 billion, after the Supreme Court recently rejected an appeal connected to the seized assets. 

These Bitcoin were originally confiscated from the dark web platform Silk Road. 

With the court’s decision clearing the way, the government is now set to sell the large Bitcoin stash on the open market, sparking debate within the crypto community about the potential impact on Bitcoin’s price.

According to market observers, previous large government Bitcoin sales, such as Germany’s sale of nearly 50,000 BTC, triggered price declines. 

This history has fueled speculation about whether the U.S. government’s upcoming sale could lead to a similar market sell-off. 

However, no clear decision has been announced about whether the government will sell the entire Bitcoin amount at once or adopt a more gradual approach.

Economist and well-known Bitcoin critic Peter Schiff weighed in on the situation with a humorous suggestion. 

Schiff, known for his frequent critiques of Bitcoin, proposed that MicroStrategy CEO Michael Saylor—an outspoken Bitcoin advocate—should consider purchasing the government-held 69,370 BTC. 

"If Saylor is as bullish on Bitcoin as he claims, buying this large amount could help stabilise the market," Schiff remarked, highlighting mixed opinions surrounding the sale's potential impact.

On the political front, the sale comes as Republican candidate Donald Trump has promised to establish a “strategic Bitcoin stockpile” if elected. 

Meanwhile, Democratic candidate Kamala Harris has not yet shared her stance on how seized cryptocurrencies should be handled.

As the U.S. government prepares to move forward with the sale, market participants remain divided, with some expressing optimism and others voicing concerns over potential market disruptions based on the scale of the transaction.

At the time of writing, the Bitcoin price was $62,479.82.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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