The post Silk Road’s $6.5B Bitcoin stash poses no short-term risk if sold OTC – CryptoQuant appeared on BitcoinEthereumNews.com.

CryptoQuant believes the US government selling $6.5 billion in Bitcoin confiscated from Silk Road would not have an adverse impact on the market if sold via over-the-counter (OTC) desks, according to a Jan. 9 report. The Bitcoin (BTC) stash is currently worth roughly $6.5 billion, and many have raised concerns about its potential sale and the effects it would have on the wider market. Silk Road Bitcoin sale The US Department of Justice (DOJ) was cleared to sell the BTC on Jan. 8. Despite market speculation, the Silk Road Bitcoin stash remains dormant, with no movement recorded.  Bitcoin’s 15% fall from its all-time high of $108,000 to $92,099.54 as of press time is one of the worst drawdowns in the past three months and was primarily driven by short-term holders selling amid panic. In the past 24 hours alone, approximately 36,400 BTC were transferred from short-term holders to exchanges, with the Spent Output Profit Ratio (SOPR) falling below 1. The movement indicates that, on average, these coins were moved at a loss, which has contributed significantly to the market’s downward pressure. As a result, CryptoQuant’s analysis pointed out that the potential selling pressure from the Silk Road stash is negligible in the long term. The firm noted that over the past year, Bitcoin’s realized market cap has increased by $381.7 billion, dwarfing the $6.5 billion the Silk Road stash represents. Method of sale Although selling the Silk Road stash through OTC desks would maintain the market integrity in the short term, the firm acknowledged that dumping the $6.5 billion worth of BTC on the spot market could cause severe price corrections. CryptoQuant’s analysis cited the German government’s sale of 50,000 BTC in July 2024, which had a noticeable impact on Bitcoin’s price. It added that in the current scenario, short-term negative volatility…

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Filed under: News - @ January 10, 2025 12:23 am