Bitwise Chief Investment Officer Matt Hougan has outlined two potential outcomes if the US government decides to sell its Bitcoin holdings from the Silk Road case. He noted that the market would quickly absorb the $6.5 billion Bitcoin stash, and he believes that Donald Trump's administration would likely repurchase these coins. However, Bitcoin critic Peter Schiff predicts that the Biden administration will sell these Bitcoins before January 20.
Hougan's comments follow a court's approval for the government to liquidate the 69,000 BTC seized from Silk Road. He expressed that if the sale occurs in the final days of Biden's presidency, the market would swiftly adapt. Yet, it remains uncertain whether Trump will act on repurchasing the coins, as he hasn't made any statements regarding this.
While the US considers offloading these coins, other countries are looking to establish crypto reserves. For example, Bhutan’s Gelephu Mindfulness City recently announced plans to include Bitcoin, Ethereum, and BNB in its reserves.
In contrast, Schiff believes it’s unlikely that the president-elect will buy these coins if they are sold before he takes office. He has warned since last November that the Biden administration would liquidate all US-owned Bitcoin before Trump’s return. He also mentioned that while Trump promised not to sell US-owned Bitcoin, he never committed to buying more.
A $6.5 billion sale could significantly impact Bitcoin's price, with Schiff predicting a crash in MSTR stock due to its Bitcoin exposure.
Meanwhile, crypto analyst Ali Martinez has a more optimistic view. He suggests that Bitcoin might be poised for a rebound, needing to break above $94,600 to trigger a rally toward $96,300 or $97,000. Notably, 66.38% of traders on Binance are betting on a price rebound, indicating confidence in a positive shift.
