3 months ago
CryptoQuant believes the US authorities selling $6.5 cardinal successful Bitcoin confiscated from Silk Road would not person an adverse interaction connected the marketplace if sold via over-the-counter (OTC) desks, according to a Jan. 9 report.
The Bitcoin (BTC) stash is presently worthy astir $6.5 billion, and galore person raised concerns astir its imaginable merchantability and the effects it would person connected the wider market.
Silk Road Bitcoin sale
The US Department of Justice (DOJ) was cleared to sell the BTC connected Jan. 8. Despite marketplace speculation, the Silk Road Bitcoin stash remains dormant, with nary question recorded.
Bitcoin’s 15% autumn from its all-time precocious of $108,000 to $92,099.54 arsenic of property clip is 1 of the worst drawdowns successful the past 3 months and was chiefly driven by short-term holders selling amid panic.
In the past 24 hours alone, astir 36,400 BTC were transferred from short-term holders to exchanges, with the Spent Output Profit Ratio (SOPR) falling beneath 1. The question indicates that, connected average, these coins were moved astatine a loss, which has contributed importantly to the market’s downward pressure.
As a result, CryptoQuant’s investigation pointed retired that the imaginable selling unit from the Silk Road stash is negligible successful the agelong term. The steadfast noted that over the past year, Bitcoin’s realized marketplace headdress has accrued by $381.7 billion, dwarfing the $6.5 cardinal the Silk Road stash represents.
Method of sale
Although selling the Silk Road stash done OTC desks would support the marketplace integrity successful the abbreviated term, the steadfast acknowledged that dumping the $6.5 cardinal worthy of BTC connected the spot marketplace could origin terrible terms corrections.
CryptoQuant’s investigation cited the German government’s merchantability of 50,000 BTC successful July 2024, which had a noticeable interaction connected Bitcoin’s price. It added that successful the existent scenario, short-term antagonistic volatility depends connected however the DOJ sells the BTC.
Even if the DOJ decides to merchantability the important Bitcoin stash utilizing crypto exchanges, assorted on-chain metrics stay solid. CryptoQuant CEO Ki Young Ju noted connected Jan. 7 that BTC’s evident request remains precise high.
Apparent request is the quality betwixt Bitcoin accumulation done mining and changes successful inventory, which refers to the proviso being inactive for implicit a year.
Additionally, he highlighted that Bitcoin volition stay connected an upward trajectory arsenic agelong arsenic superior flows into the market, indicating that BTC’s realized headdress is presently astatine its highest levels.
The station Silk Road’s $6.5B Bitcoin stash poses nary short-term hazard if sold OTC – CryptoQuant appeared archetypal connected CryptoSlate.
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