By: Eva Baxter
The US government plans to auction off approximately $130 million worth of Bitcoin (BTC) which had been previously seized in relation to the Silk Road darknet marketplace. Seized from two individuals, the Bitcoins will be sold off in two lots. The first includes 2874.9 BTC valued at $129 million and the second comprises 58.7 BTC valued at $3.3 million. Individuals other than the defendants are permitted to file an ancillary petition within 60 days of Jan. 10 expressing interest in the forfeited property.
The US government's decision to sell the Bitcoin contributes to the ongoing selling pressure on BTC, which has been experiencing a 20% decline over the past 10 days. Market expert Adam Cochran suggests that the recent events may constitute a 'sentiment reset' for market participants. While a price range between $35,000 and $37,000 could be suitable for larger spot buys in the longer term, a potential drop to the $28,000 to $32,000 range may present favourable conditions for confident, leveraged deployment.
The US government currently holds a significant amount of Bitcoin, valued at approximately $9 billion as of December 2023. However, the stash is not exclusively composed of Bitcoins seized from the Silk Road operations.
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