Analysts believe the Bitcoin market can handle a massive upcoming sale of government-held Bitcoin without major price drops.
Billions of Bitcoin on the Block
The US Department of Justice (DOJ) is planning to sell off approximately $6.5 billion worth of Bitcoin. This Bitcoin was seized years ago in connection with the now-defunct Silk Road online black market. While past large-scale Bitcoin sales have caused market volatility, this time, experts are less concerned.
Can the Market Handle It?
IntoTheBlock, a market intelligence firm, predicts the Bitcoin market can easily absorb this sale. They point out that daily trading volumes in Bitcoin are regularly in the tens of billions of dollars. Therefore, the DOJ’s sale, while significant, is relatively small compared to the overall market activity. They expect minimal impact on the Bitcoin price.
Bitcoin’s Current State
At the time of writing, Bitcoin is trading around $94,341, showing little change over the past 24 hours.
Disclaimer: This information is for general knowledge only and is not financial advice. Always do your own research before investing in cryptocurrencies.
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