CryptoQuant believes that if the US government sells the $6.5 billion of Bitcoin it confiscated from Silk Road, it will not have a negative impact on the market. Over-the-counter (OTC) desks, according to a Jan. 9 report.
The Bitcoin (BTC) stash is currently worth around $6.5 billion, and many have expressed concern about its potential sale and its impact on the broader market.
silk road bitcoin sale
The United States Department of Justice (DOJ) allowed to sell Despite market speculation, the Silk Road Bitcoin stash remains dormant, with no movements recorded.
Bitcoin’s 15% fall from its all-time high of $108,000 to $92,099.54 at the time of writing was one of the worst drawdowns in the past three months, largely due to the short-term trend amid panic. It was caused by holders selling.
In the last 24 hours alone, approximately 36,400 BTC was transferred from short-term holders to the exchange, with a spend return ratio (SOPR) of less than 1. This movement indicates that, on average, these coins were trading at a loss, which significantly contributed to the downward pressure on the market.
As a result, CryptoQuant’s analysis noted that potential selling pressure from Silk Road’s stash is negligible in the long term. The company says:Over the past year, Bitcoin’s realized market capitalization has increased by $381.7 billion, far below Silk Road’s stash of $6.5 billion.
Sales method
Selling Silk Road’s stash through its OTC desk would maintain market health in the short term, but the company dumping $6.5 billion worth of BTC on the spot market could cause a severe price correction. admitted that there is.
CryptoQuant’s analysis cited the German government’s sale of 50,000 BTC in July 2024, which had a noticeable impact on Bitcoin prices. It added that in the current scenario, short-term negative volatility depends on how the DOJ sells BTC.
Even if the Department of Justice decides to use crypto exchanges to sell large stashes of Bitcoin, various on-chain metrics remain strong. CryptoQuant CEO Ki Young Joo noticed On January 7th, it turned out that the apparent demand for BTC is still very high.
Apparent demand is the difference between the amount of Bitcoin produced through mining and the change in inventory, and refers to the fact that there has been no supply for more than a year.
Furthermore, he highlighted Bitcoin will continue its upward trajectory as long as capital flows into the market, indicating that BTC’s realization ceiling is currently at its highest level.
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