TechFlow News, January 9 — According to CoinDesk, concerns over a potential U.S. Department of Justice liquidation of 69,370 Silk Road bitcoins (worth approximately $6.5 billion) have been overstated. Analysts highlight three key reasons:
1. Although the amount of 69,370 bitcoins is substantial, any government liquidation would need to follow the best-price principle, likely involving an orderly, phased approach. Moreover, the market has long anticipated this possibility, and much of the impact has already been priced in.
2. In terms of market absorption capacity, long-term holders (holding for more than 155 days) have reduced their holdings by over 1 million bitcoins since September 2024, with current total holdings at around 13.1 million BTC. Despite this scale of selling pressure, bitcoin's price has risen from $60,000 to above $100,000, demonstrating strong underlying demand.
3. The German government successfully sold approximately 50,000 bitcoins (worth about $3.5 billion) between June and July 2023, providing a meaningful precedent for large-scale disposals. Notably, the market bottomed while Germany still held 25,000 bitcoins, indicating that such sales volumes are insufficient to dictate overall market direction.
