CryptoQuant is of the opinion that the US Government selling the $6.5 billion worth of Bitcoins confiscated by Silk Road via the US Treasury would have no adverse effect on the Bitcoin market. According to a report published on Jan. 9, there were over-thecounter (OTC), desks.
Bitcoin’s (BTC), currently valued at $6.5 billion has raised concern about the possible sale of the Bitcoin stash and its effects on the market.
Silk Road Bitcoin sale
US Department of Justice was established in the United States. Buy Clearance BTC was on 8th January. Silk Road Bitcoins remain dormant and unmoved despite speculation on the market.
Bitcoin’s 15% fall from its all-time high of $108,000 to $92,099.54 as of press time is one of the worst drawdowns in the past three months and was primarily driven by short-term holders selling amid panic.
In just the last 24 hours, 36,400 BTC have been transferred to exchanges from holders of short-term BTC, and the spent output profit ratio (SOPR), which is below 1, has fallen. The movement indicates that, on average, these coins were moved at a loss, which has contributed significantly to the market’s downward pressure.
As a result, CryptoQuant’s analysis pointed out that the potential selling pressure from the Silk Road stash is negligible in the long term. The company noted that the over the past year, Bitcoin’s realized market cap has increased by $381.7 billion, dwarfing the $6.5 billion the Silk Road stash represents.
Purchase Method
Although the Silk Road stockpile could be sold through OTC desks to maintain market integrity, in the long term the firm recognized that selling $6.5 Billion worth of BTC at the spot market would lead to severe price changes.
CryptoQuant’s analysis cited the German government’s sale of 50,000 BTC in July 2024, which had a noticeable impact on Bitcoin’s price. In the present scenario, the DOJ’s decision on the sale of BTC will determine the volatility in short term.
CryptoQuant CEO, David Levy says that even if DOJ decided to sell its substantial Bitcoin stock using cryptocurrency exchanges, many on-chain metrics would remain strong. CryptoQuant CEO Ki Young Ju Note: on Jan. 7 that BTC’s apparent demand remains very high.
A difference in apparent demand between Bitcoin’s production by mining and the changes in inventories, which is when the supply is inactive over the course of a full year.
Another thing he did was to add a s highlighted Bitcoin’s value will continue to rise as long as money continues to flow into the market. The current level of BTC is at its maximum.
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