Market intelligence firm IntoTheBlock says that the Bitcoin (BTC) market can absorb the U.S. Department of Justice’s (DOJ) plan to liquidate billions of dollars worth of the asset without any hiccups.
In a new article, IntoTheBlock says that the government is going to sell $6.5 billion worth of BTC associated with the Silk Road, a defunct online black market that was shuttered over a decade ago.
“The US Department of Justice (DOJ) is about to make a significant move in the market, potentially shaking things up with the sale of a large chunk of Bitcoin. These funds are directly tied to the infamous Silk Road, the dark web marketplace shut down in 2013 for its role in facilitating illegal transactions.”
According to IntoTheBlock, massive BTC sales have hurt Bitcoin’s price in the past. However, this time around, the crypto analytics platform expects the market to simply soak up the selling pressure without any major setbacks.
“In the past, significant government Bitcoin sales have caused notable market fluctuations. As this substantial volume enters the market, traders are on high alert for a possible downturn in Bitcoin’s value.
This sale, which has not yet been executed, appears manageable for the Bitcoin market which regularly processes daily trading volumes in the tens of billions of dollars. While the DOJ’s planned liquidation represents a significant amount of Bitcoin, the market could absorb this selling pressure without major disruption.”
The crypto king is trading for $94,341 at time of writing, a marginal during the last 24 hours.
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