The US govt to liquidate 69,000 BTC

[retreat]

-snip-
Are they going to sell more BTC or use the remaining as their national Bitcoin reserve?

It seems more likely that they will sell all of their Bitcoin than use it as a reserve, simply because there has been no further discussion about making Bitcoin a reserve, and it doesn't seem likely to happen anytime soon. The Biden administration is ending in a few days, and that makes them want to do whatever they can to sell the remaining Bitcoin, to prevent the Trump administration from profiting from it. It sounds ridiculous, because Trump will eventually buy Bitcoin back anyway, but that's politics.

[davis196]

A lot of Bitcoin enthusiasts were bullish about this year's market being one of the best we have ever seen which is normal due to the Bitcoin market's 4-year cycle that always provides new ATH prices. 
However, the current 4years cycle market is different from the previous one we have experienced and we should be ready for any surprises because the major investors and holders in this current market are institutional banking, private investment organizations, and the government.

Do you suggest, that the selling of six billion USD worth of Bitcoins would break the 4-year cycle of the BTC market?
I don't mind the USA selling seized Silk Road Bitcoins. This would push the BTC price down for a while, which presents an opportunity for the BTC investors to buy cheaper BTC before another bull run occurs. I'm still very skeptical about the idea of a US strategic Bitcoin reserve, but lets wait and see what will happen after Trump's administration starts working. Maybe the news about this BTC liquidation is one of the reasons for the current Bitcoin price to stay below the 95K USD level.

[B-BossMan]

Just another head-up-their-ass move by the Biden administration.
I will agree that Saylor didn't just buy 1000 Bitcoin at 94k for nothing.
I'm going with him. Rather than government FUD/Silk Road BS,
Although it's the same. They FUD, and everybody gets scared and sells; meanwhile, the government selling BTC is a GOOD thing to me because we want less BTC in the hands of the government and more BTC in the hands of the people. HODL strong! ✊🏻
 Moreover let's be observing !!!

[betswift]

This is what I pointed out some days ago not knowing that the US government would be the first to make a move by giving the DOJ the order to sell $6.5 billion in Bitcoin seized from Silk Road. However, the U.S. entities were said to hold 65% more Bitcoin than non-U.S. entities after Trump's national Bitcoin reserve announcement, and I believe they purposely doing selling of the BTC before Donald Trump's inauguration.

There’s no clear law yet regarding holding Bitcoin as a reserve, so that’s still far from being a discussion.

The DOJ’s decisions can’t be influenced by politics. If they decide to sell, it’s like a command that has to be executed - no diversions or delays.

We also shouldn’t worry about this causing the market to bleed because the DOJ will ensure it’s not a one-time sell. They’ll likely time it well and sell it in portions to avoid disrupting the market.

If, at some point, all of these Bitcoins are sold and the government decides to pass a law recognizing Bitcoin as a legal reserve, that’s a whole different story. In that case, they could start purchasing Bitcoin again.

Agreed. They don't have much freedom in their decision-making - straight and to the point.
It's just how it works juridically and legally out there.

[CryptoBuds]

Are they going to sell more BTC or use the remaining as their national Bitcoin reserve?

I don't think since the US government has decided the adoption of bitcoin for it Fed reserve and being the highest nation holding bitcoin, they would likely keep the recovered bitcoins that is worth $6.5 billion from the Silk and add up to their initial holding.
The vision of the US government as Donald Trump emerges office is to accumulate infinite number of bitcoins which these seized recovered funds maybe channeled over to the Fed reserve account of their bitcoins.
Knowing the friendly differences between Biden and Trump over bitcoin, we all we'd know how strong hold and supportive Trump had been over it speculative adoption to provide more to its values, I'd doubt if the DOJ attorney general would forward to sell them off because he'd be questioned to account what the funds was used for knowing the attorney general was Bidden's appointee to lead the DOJ.
So I think he might end up in jail by Trump if sold the recovered Silk bitcoins instead would be added to the already national reserve.

Although the DOJ has not sold any bitcoin to date, they have been given court permission to sell if they want, Trump or anyone else would not have the right to impeach the DOJ just because they sold bitcoin. Don't go crazy over Trump and think this will ruin the bitcoin reserve plan and we make such silly speculations.

I also supported Trump in the election and I also hope he will bring a breath of fresh air to the market but we should be realistic that he does not love and care about Bitcoin that much. He talked a lot about bitcoin, crypto during the election but mostly to win votes, he is not a big fan of bitcoin. Bitcoin Reserve? It's too early to talk about bitcoin reserves and if you want to, ask the Fed instead of Trump or any senator because they have no authority over national reserves.

[asriloni]

Are they going to sell more BTC or use the remaining as their national Bitcoin reserve?

I don't think since the US government has decided the adoption of bitcoin for it Fed reserve and being the highest nation holding bitcoin, they would likely keep the recovered bitcoins that is worth $6.5 billion from the Silk and add up to their initial holding.
The vision of the US government as Donald Trump emerges office is to accumulate infinite number of bitcoins which these seized recovered funds maybe channeled over to the Fed reserve account of their bitcoins.
Knowing the friendly differences between Biden and Trump over bitcoin, we all we'd know how strong hold and supportive Trump had been over it speculative adoption to provide more to its values, I'd doubt if the DOJ attorney general would forward to sell them off because he'd be questioned to account what the funds was used for knowing the attorney general was Bidden's appointee to lead the DOJ.
So I think he might end up in jail by Trump if sold the recovered Silk bitcoins instead would be added to the already national reserve.

Although the DOJ has not sold any bitcoin to date, they have been given court permission to sell if they want, Trump or anyone else would not have the right to impeach the DOJ just because they sold bitcoin. Don't go crazy over Trump and think this will ruin the bitcoin reserve plan and we make such silly speculations.

I also supported Trump in the election and I also hope he will bring a breath of fresh air to the market but we should be realistic that he does not love and care about Bitcoin that much. He talked a lot about bitcoin, crypto during the election but mostly to win votes, he is not a big fan of bitcoin. Bitcoin Reserve? It's too early to talk about bitcoin reserves and if you want to, ask the Fed instead of Trump or any senator because they have no authority over national reserves.

DOJ already got a permission to sell BTC. Although, they have not yet sold it, they can do that anytime. What's the difference?

I'm only thinking this big sell is gonna give a huge impact to the trend that is happening now. It seems Biden wants to offload Bitcoin before he leaves his office soon. He's against Trump's plan.

6.9 billion is more than 10% of the total volume, it's a lot to be dumped to the market. I think the whales are already front running it to dump their bitcoin before DOJ does it.

[Mpamaegbu]

This is what I pointed out some days ago not knowing that the US government would be the first to make a move by giving the DOJ the order to sell $6.5 billion in Bitcoin seized from Silk Road.

I didn't see that news on time. Otherwise, I wouldn't have bought at $96k that I did two days or so ago. I would've waited a while for more drop because such was a huge fundamental. Anyway, buyers are eating up that fall and pushing price up back. It's currently sitting at $94k

Are they going to sell more BTC or use the remaining as their national Bitcoin reserve?

I think the latter will be the case here since the US has the resolve to make Bitcoin her national reserve. There's no way all will be sold. However, even the small quantity sold, it has thrown the market into a great dump. Hopefully, we go up back to $100k before the swearing in of Mr Trump as I expect price to dump soon after his assumption of office.

[john_egbert]

Are they going to sell more BTC or use the remaining as their national Bitcoin reserve?

I think the latter will be the case here since the US has the resolve to make Bitcoin her national reserve. There's no way all will be sold. However, even the small quantity sold, it has thrown the market into a great dump. Hopefully, we go up back to $100k before the swearing in of Mr Trump as I expect price to dump soon after his assumption of office.

..Do they have a legal way to turn these coins into reserves?
If not - there is no point in thinking about it, simply because they won't do what the law doesn't dictate or allow.

[franky1]

Are they going to sell more BTC or use the remaining as their national Bitcoin reserve?

From what I read in that picture, it's that DOJ can sell those bitcoins, not that DOJ must sell them.
This being said, indeed, I would not be surprised if DOJ postpones the selling a little and then those bitcoins become the first batch in Trump's USA bitcoin reserve.

it might also just be a legal process, for instance. if the pardon of the silk road owner does go through, then the us gov having his BTC means that they need to give them back. so disposing of them before the pardon means there is nothing to return as it legally was spent whilst the crimes were still valid

it might be bidens teams last attempt to not let trump have his cake and eat it. if trump is to pardon silkroads (currently incarcerated) owner, biden might not want trump to also have his btc to do a deal with the guy or hand them back to the guy

[Marvell1]

I think the latter will be the case here since the US has the resolve to make Bitcoin her national reserve. There's no way all will be sold. However, even the small quantity sold, it has thrown the market into a great dump. Hopefully, we go up back to $100k before the swearing in of Mr Trump as I expect price to dump soon after his assumption of office.

No, the US has no determination or effort to use bitcoin as a national reserve, it is all just a statement by Trump during the election campaign and an idea of ​​Senator Lummis. Everything is just a rumor and we don't have any more information about it but many of us deliberately exaggerated this rumor causing many people to misunderstand.

By the way, according to the news, the court has allowed DOJ to sell bitcoin but so far they have not sold any bitcoin. The market is just panicking on its own because of this news.

According to ARKM, all of DOJ's bitcoins are still intact, they haven't sold them yet but the market is reacting negatively and I don't think it's a good thing they haven't sold.



https://intel.arkm.com/explorer/address/bc1qa5wkgaew2dkv56kfvj49j0av5nml45x9ek9hz6

[o48o]

A lot of Bitcoin enthusiasts were bullish about this year's market being one of the best we have ever seen which is normal due to the Bitcoin market's 4-year cycle that always provides new ATH prices.  
However, the current 4years cycle market is different from the previous one we have experienced and we should be ready for any surprises because the major investors and holders in this current market are institutional banking, private investment organizations, and the government.

This is what I pointed out some days ago not knowing that the US government would be the first to make a move by giving the DOJ the order to sell $6.5 billion in Bitcoin seized from Silk Road. However, the U.S. entities were said to hold 65% more Bitcoin than non-U.S. entities after Trump's national Bitcoin reserve announcement, and I believe they purposely doing selling of the BTC before Donald Trump's inauguration.

Are they going to sell more BTC or use the remaining as their national Bitcoin reserve?
-cut-

I called them selling them all before Trump's inauguration. But i thought that's going to be via Biden's executive order.
And again, it's going to be good for bitcoin in the long run. Maybe not for the price, but trusting some reserves to pump the price isn't healthy growth at all. Using bitcoin reserves to inflate price, we are creating dependency of them staying instead of resilience.

[kotajikikox]

Are they going to sell more BTC or use the remaining as their national Bitcoin reserve?

From what I read in that picture, it's that DOJ can sell those bitcoins, not that DOJ must sell them.
This being said, indeed, I would not be surprised if DOJ postpones the selling a little and then those bitcoins become the first batch in Trump's USA bitcoin reserve.

From other news outlets too all it says is that the court has now cleared USA's DOJ to sell their bitcoins. Words like greenlights and allows were also used. It does not mean DOJ must sell it nor they will sell it immediately. Being cleared to do this simply just means that the year long dispute is now taken care of and the DOJ can proceed to think about what to do with the seized bitcoins.

I am not too worried about this. We do not know if DOJ will actually sell it but if they do, it is just an opportunity for us to acquire more before Trump takes his seat and eventually adds bitcoin to their national reserve.

[NotATether]

All the muppets who said the USA would start a strategic bitcoin reserve, raise your hand.

[Yaunfitda]

A lot of Bitcoin enthusiasts were bullish about this year's market being one of the best we have ever seen which is normal due to the Bitcoin market's 4-year cycle that always provides new ATH prices.  
However, the current 4years cycle market is different from the previous one we have experienced and we should be ready for any surprises because the major investors and holders in this current market are institutional banking, private investment organizations, and the government.

This is what I pointed out some days ago not knowing that the US government would be the first to make a move by giving the DOJ the order to sell $6.5 billion in Bitcoin seized from Silk Road. However, the U.S. entities were said to hold 65% more Bitcoin than non-U.S. entities after Trump's national Bitcoin reserve announcement, and I believe they purposely doing selling of the BTC before Donald Trump's inauguration.

Are they going to sell more BTC or use the remaining as their national Bitcoin reserve?
-cut-

I called them selling them all before Trump's inauguration. But i thought that's going to be via Biden's executive order.
And again, it's going to be good for bitcoin in the long run. Maybe not for the price, but trusting some reserves to pump the price isn't healthy growth at all. Using bitcoin reserves to inflate price, we are creating dependency of them staying instead of resilience.

And with that, it's really politically motivated isn't it? I mean we have known Biden's anti-crypto's stance and so even in his last day, he will have this executive order to sell all the US Bitcoin at their custody to somewhat created a FUD and it's been effective as from as high as $102k, we go down hard again at $94k to $95k. This could be his last stance though as Trump will flip everything and make a U-turn. Although if you look at it, they haven't sold any yet. But let's see, he has few days remaining and so the DOJ base on the executive order could really hasten their offload of this BTC.

[hero_the_bossman]

I called them selling them all before Trump's inauguration. But i thought that's going to be via Biden's executive order.
And again, it's going to be good for bitcoin in the long run. Maybe not for the price, but trusting some reserves to pump the price isn't healthy growth at all. Using bitcoin reserves to inflate price, we are creating dependency of them staying instead of resilience.

What about getting rid of these Bitcoins and then getting some of them back with a better price?
Sounds like a deal for me 

[Hanadawa]

Do you suggest, that the selling of six billion USD worth of Bitcoins would break the 4-year cycle of the BTC market?
I don't mind the USA selling seized Silk Road Bitcoins. This would push the BTC price down for a while, which presents an opportunity for the BTC investors to buy cheaper BTC before another bull run occurs. I'm still very skeptical about the idea of a US strategic Bitcoin reserve, but lets wait and see what will happen after Trump's administration starts working. Maybe the news about this BTC liquidation is one of the reasons for the current Bitcoin price to stay below the 95K USD level.

I think the US Government is selling their Bitcoin during the Biden administration with the aim of preventing Trump from profiting from the Bitcoins confiscated by the US. This is a normal thing in politics. They got Bitcoin during their time so it makes sense that they would want to sell it. But I still doubt whether the sale will actually happen. But it seems that the effect of the issue has kept Bitcoin at $92k-$95k. If the liquidation really happens I think there is a possibility that Bitcoin will crash and return to the $60k level. And the idea of ​​making Bitcoin a strategic reserve I don't think it will happen anytime soon because if Trump makes Bitcoin a strategic reserve it seems that it will affect the US economy to become unstable because the price of Bitcoin is also quite volatile. -CMIIW

[hero_the_bossman]

I think the US Government is selling their Bitcoin during the Biden administration with the aim of preventing Trump from profiting from the Bitcoins confiscated by the US. This is a normal thing in politics. They got Bitcoin during their time so it makes sense that they would want to sell it. But I still doubt whether the sale will actually happen. But it seems that the effect of the issue has kept Bitcoin at $92k-$95k. If the liquidation really happens I think there is a possibility that Bitcoin will crash and return to the $60k level. And the idea of ​​making Bitcoin a strategic reserve I don't think it will happen anytime soon because if Trump makes Bitcoin a strategic reserve it seems that it will affect the US economy to become unstable because the price of Bitcoin is also quite volatile. -CMIIW

Nah, do you think they would make so many reserves it would affect them in such a way?
Highly unlikely - it's done more for prestige and get the lead in the new brand thing.
So that's not the case, in my opinion.
Maybe they just try to shake up the sentiment to get the market rolling afterward. Or it's just done purely to get rid of the BTC that was confiscated.

[goldkingcoiner]

It does not matter much whether they sell or not, what matters is the FUD that will push the price down. The act of selling that amount of Bitcoin will not have a great effect on the price of Bitcoin, seeing as it is only about 0.3% of the total market cap supply so far. And obviously whales will be climbing over each other to gobble that coin up.

The question of will it be sold or not: I think that under the Biden administration it will probably be sold. Under Trump, it probably will not be sold. But the whales are going to milk this FUD as much as they can, either way. So I expect lots of panic selling ahead and a cheap Bitcoin price which will eventually and probably quickly recover.

We already had a 10% dip from the first wave of FUD, followed by a quick recovery. I think we will see this pattern again. We might even see sub 80K.

A good buying opportunity in my book.

edit: supply so far, not market cap.

[franky1]

It does not matter much whether they sell or not, what matters is the FUD that will push the price down. The act of selling that amount of Bitcoin will not have a great effect on the price of Bitcoin, seeing as it is only about 0.3% of the total market cap. And obviously whales will be climbing over each other to gobble that coin up.

"fud that will push the price down" = speculation that offers discounts before ATH full bull season, yum yum

"its only about 0.3% of the total market cap" (facepalm)... markets are not priced by the cap. you should check CEX market volume to judge how much coin is actually circulated through a market and then judge the impact coin could make if sold on public CEX as one lump or batched out over days/weeks
secondly, most DOJ sales are done via private auction not CEX market public sales, so yes its more speculation of gossip rather than direct impact on market

[Mpamaegbu]

No, the US has no determination or effort to use bitcoin as a national reserve, it is all just a statement by Trump during the election campaign and an idea of ​​Senator Lummis. Everything is just a rumor and we don't have any more information about it but many of us deliberately exaggerated this rumor causing many people to misunderstand.

Well, I don't think it was a mere comment from Trump for the sake of electioneering. I believe he meant it and more likely to carry it out than not executing it. Trump will not like to fail on that and be seen as talks without actions. Already, people see him an loquacious and I don't think he would want to prove them right.

According to ARKM, all of DOJ's bitcoins are still intact, they haven't sold them yet but the market is reacting negatively and I don't think it's a good thing they haven't sold.

Yes, I checked and no single BTC had been withdrawn from that wallet. Indeed, it's not good news. If we already dipped to this point when the said BTC hadn't even been touched, we can imagine what we happen when the market is flooded with it.