According to one market analyst, the anticipated sale of 2,900 bitcoins looks small in comparison to the funds being pulled out of Grayscale’s ETF.
Market analysts don’t think the US government’s intention to sell approximately $118 million worth of Silk Road Bitcoin is a big deal.
Following the sentencing of Silk Road Xanax dealer Ryan Farace and his 72-year-old father Joseph Farace for money laundering conspiracy on January 8, a forfeiture notice dated January 10th, which was circulated on social media on January 24th, reveals that the government intends to dispose of the 2,934 BTC.
There were some who were worried that the auction might cause a massive “dump” of Bitcoin worth millions of dollars, but many others, like Swan Bitcoin’s managing director Steven Lubka, said that the sale would be “peanuts” in comparison to the money that has been pulled out of the Grayscale Bitcoin Trust in the past week.
“For breakfast, Lubka and her team have been consuming four times the amount of GBTC sales,” she exclaimed.
Since its conversion to a spot Bitcoin exchange-traded fund on January 11, the GBTC has sold 106,575 BTC for $4.2 billion. The most recent outflow was 10,871 BTC on January 24.
Data from crypto business 21.co shows that the United States government has had three seizures totaling $7.7 billion, or 194,188 BTC. The anticipated sale represents barely 1.5% of that amount. The sum is still below one percent of the entire Bitcoin supply.
The United States government occasionally makes notable Bitcoin purchases, such as that of venture capitalist Tim Draper, who bought about 30,000 BTC at an auction in 2014.
Rather than holding auctions, the government has lately been selling confiscated cryptocurrency on exchanges; the most recent reported sale was 9,118 BTC in March 2023.
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