On March 10, Bitcoin Magazine CEO David Bailey posted on X, stating that the U.S. Department of Justice (DOJ) may be selling Bitcoin (BTC) from Silk Road, a speculation that has sparked widespread discussion in the crypto community. Bailey believes that despite Trump signing an executive order for strategic Bitcoin reserves, the liquidation of Silk Road may be the main reason for the recent drop in Bitcoin's price.
However, some users have expressed skepticism about this claim, arguing that even if the DOJ's holdings are equivalent to Germany's 2024 Bitcoin sales, this amount is unlikely to have a substantial impact on the global scale of the Bitcoin market.
Some have further pointed out that compared to the potential selling by the Department of Justice, factors such as the global economic situation, monetary policy direction, and geopolitical situation are the key forces influencing Bitcoin's price fluctuations, as they have a more far-reaching impact on Bitcoin's price.
Bailey previously suggested that Trump should introduce Bitcoin payments in his proposed 'Golden Card' project aimed at attracting foreign investors. Although this is purely theoretical, the concept highlights the increasingly intertwined trends among global capital flows, politics, and Bitcoin.
Meanwhile, experts have suggested that the government sell other seized assets to fund Trump's strategic Bitcoin reserves. According to data from Arkham Intelligence, the federal government currently holds approximately $126 million in Ethereum, $122 million in Tether (USDT), as well as other assets like BNB and WBTC. Liquidating these assets could potentially raise an additional 5,000 BTC to support the implementation of the Bitcoin reserve plan.
Real Vision analyst Jamie Coutts warned that the price trend of Bitcoin is closely linked to corporate bond spreads and government bond volatility. If bond spreads continue to widen, risk assets like Bitcoin may face greater pressure.
However, there are also some positive factors driving the rise, such as the increase in national Bitcoin holdings, potential ETF inflows, and MicroStrategy's plan to purchase up to 200,000 BTC. These factors may bring new momentum to the market.
As the market reacted to uncertainties regarding Trump's economic policies, Bitcoin's price fell to $80,000 on March 10, down nearly 10% from the previous day.
At the same time, traders are currently focusing on the Consumer Price Index (CPI) on March 12 and the Producer Price Index (PPI) on March 13, as these data may influence Bitcoin's next movements.
Conclusion:
The volatility of the Bitcoin market has once again become a focus, with rumors of the U.S. Department of Justice possibly liquidating Silk Road Bitcoin triggering widespread discussion. Although this news has had a short-term impact on market sentiment, the long-term trend of Bitcoin's price is still influenced by multiple factors, including the global economic situation, monetary policy, geopolitical issues, and institutional investor behavior.
Additionally, the CPI and PPI data for March 12 and 13 may become key catalysts for short-term market movements. The future evolution of Bitcoin's price will be influenced by the interaction of these factors.
Do you agree with David Bailey's viewpoint? Do you think the U.S. Department of Justice liquidating Silk Road BTC is the main reason for this round of decline?