Bitcoin Braces for Further Downside as US Government Prepares to Unload Silk Road Holdings
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Bitcoin looks wobbly as the US government prepares to auction off 69,370 bitcoins seized from the Silk Road marketplace. The cryptocurrency market is teetering on the brink of a potential downturn as the US government clears the final legal hurdles to auction off 69,370 bitcoins seized from the defunct Silk Road marketplace. This massive stockpile, valued at approximately $4.4 billion at current prices, could flood the market and trigger a significant drop in Bitcoin’s value, analysts warn. Source: BNC Bitcoin Liquid Index Bitcoin dropped under $60,000 on Thursday after poor inflation data was released in the U.S. The inflation data has reduced expectations of further rate cuts from the U.S. Federal Reserve. While the Fed surprised markets in September by cutting rates by 50 basis points (larger than the expected 25), recent inflation and employment data have cooled hopes for another big cut in November. The Silk Road The Bitcoins in question were confiscated in 2013 following the FBI’s takedown of Silk Road, a notorious online black market used for the illegal trade of drugs, weapons, and other illicit goods. Ross Ulbricht, the mastermind behind Silk Road, was subsequently convicted and sentenced to life in prison. The fate of the seized bitcoins, however, remained tied up in legal battles until recently. The Supreme Court’s recent decision not to hear an appeal regarding the ownership of the bitcoins paves the way for the US Marshals Service to proceed with the sale. This comes on the heels of Germany’s recent sale of over $2 billion worth of Bitcoin, raising concerns about the potential impact of such a large influx of cryptocurrency into the market. Experts believe that a sudden, large-scale sale could trigger a wave of panic selling, driving Bitcoin’s price down significantly. Ryan Lee, chief analyst at Bitget Research, explains that…
Filed under: News - @ October 10, 2024 8:25 pm