The United States Department of Justice (DOJ) is preparing to sell Bitcoin worth $6.5 billion, seized during the Silk Road investigation. This follows a December 30 court decision, marking the conclusion of a lengthy legal process over the ownership of these Bitcoin holdings.
Could More Bitcoin Sales Be Coming?
As of January 9, 2025, government data compiled by Arkham Intelligence reveals that the US holds approximately 198,000 BTC, valued at around $18.5 billion. The Bitcoin slated for auction represents a portion of these reserves.
Speculation is growing that the Biden administration, in its final days, might sell off the remaining Bitcoin holdings before Donald Trump assumes office. Some analysts see this as a politically charged move.
Jason Williams, a contributor to Fox Business, suggested that the Biden administration is strategically directing the DOJ to sell Bitcoin during a favorable market period. Williams speculated that Trump’s incoming administration might aim to repurchase the assets at higher prices, stating:
“This is a clear misuse of the government’s fiduciary role. We’re selling Bitcoin at around $94,000. What will Trump have to pay to reacquire them? Undoubtedly, more.”
Will the Auction Impact Bitcoin Prices?
The announcement has already created ripples in the market. Bitcoin’s price fell 2.78% following the court’s decision, as traders expressed concerns that a large government auction could add selling pressure.
However, historical data suggests that government Bitcoin auctions typically have minimal long-term impact on market prices.
Between March 2023 and now, US government Bitcoin reserves declined from 236,000 BTC to 198,000 BTC—a reduction of roughly 38,000 BTC, worth approximately $3.54 billion at current valuations. Despite these sales, Bitcoin surged by 375% during the same period, driven by strong demand for spot Bitcoin ETFs and optimism surrounding Trump’s pro-Bitcoin policies.
How Does the DOJ Handle Bitcoin Sales?
According to Glassnode co-founders Jan Happel and Yann Allemann, government-held Bitcoin is managed transparently through public auctions by the US Marshals Service. These auctions ensure minimal market disruption, unlike direct exchange sales, which could flood the market and cause sharp price declines.
The Cost of Early Liquidation
The US government has historically missed out on significant potential profits from its Bitcoin sales.
Over the years, it has auctioned approximately 195,092 BTC, earning $366.5 million. However, at today’s prices, that Bitcoin would be worth an estimated $18.25 billion—meaning nearly $17.9 billion in unrealized gains.
Despite the planned $6.5 billion sale, some industry insiders remain optimistic. Ki Young Ju, CEO of CryptoQuant, pointed out:
“With $379 billion entering the crypto market last year—about $1 billion daily—the US government’s $6.5 billion sale could be absorbed within a week. There’s no need to panic.”
While the market awaits the DOJ’s next move, the broader Bitcoin ecosystem appears resilient, buoyed by increasing institutional interest and growing adoption.
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