Sale of #bitcoins of #SilkRoad Without Immediate Impact on the Market
The stash of 6.5 billion dollars in bitcoins from Silk Road poses no short-term risk if sold OTC
CryptoQuant analysts believe that the sale by the U.S. government of 6.5 billion dollars in #bitcoin confiscated from Silk Road would not have an adverse impact on the market if sold through OTC counters, according to a report from January 9.
CryptoQuant's analysis indicated that the potential selling pressure from the Silk Road stash is insignificant in the long term. The firm noted that over the past year, the realized market capitalization of Bitcoin increased by $381.7 billion, eclipsing the $6.5 billion represented by the Silk Road stash.
While selling the Silk Road stock through OTC counters would maintain market integrity in the short term, the company acknowledged that dumping the 6.5 billion dollars into the #BTC spot market could cause severe price corrections.
CryptoQuant's analysis cited the sale of 50,000 BTC by the German government in July 2024, which had a notable impact on the price of Bitcoin. It added that in the current scenario, short-term negative volatility depends on how the Department of Justice sells the BTC.