Will the US government cause the price of Bitcoin to fall?

The United States is set to sell more than $117 million in bitcoins seized in the Silk Road court case.

Will the US government, the world’s largest holder of Bitcoin, soon cause the price of Bitcoin to fall? That’s the question some experts are asking themselves. Indeed, the United States is about to sell 2,934 Bitcoins, the equivalent of $117 million at the time of this sales filing. These bitcoins were seized as part of the Silk Road scandal.

We remind you that in November 2022, the US authorities announced that they seized 51,351 bitcoins that were stolen the online drug store Silk Road ten years ago. These bitcoins were recovered in November 2021 from the home of James Zhong, 32, who had saved them bitcoins on hidden devices… in a metal popcorn box.

In mid-March 2023, the US Govt he has already sold 9,861 bitcoins (equivalent to $216 million at the time) of those 51,351 bitcoins, causing the price of the cryptocurrency queen to fluctuate.

Fragile Bitcoin

While bitcoin has been lagging since the arrival of spot bitcoin ETFs ten days ago, experts fear further weakness in its price following the US government sell-off. Indeed, the year 2024 promises not to be easy for the queen of crypto-currencies, despite the April “wilding” that could add color to the asset.

Although the US government has expressed its intention to sell, the day of the sale has not been made public so as not to influence speculators. To date, the largest holder of bitcoins is the United States, with more than 215,000 bitcoins seized since 2020 as part of several legal investigations, including Silk Road, but also the hack of the Bitfinex crypto platform.

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