Analyst: Market concerns over possible US Department of Justice sell-off of Bitcoin exaggerated

BlockBeats News, January 9th, BlockBeats News, January 8th, DB News reported that the US Department of Justice has been approved to liquidate 69370 BTC (worth approximately $6.5 billion) seized in the Silk Road case. Coindesk analyst James Van Straten stated that market concerns about selling may have been exaggerated and listed the following reasons: There seem to be many reports about 69370 bitcoins being liquidated, and if they are really sold, they are likely to be sold in an orderly manner to obtain the best price. At the same time, the market has long known that this situation is possible, so this possibility may have been digested by market expectations. Secondly, since September, the market has absorbed over one million bitcoins. This can be reflected by a decrease in the holdings of long-term holders, who are defined by Glassnode as investors who have held Bitcoin for more than 155 days. As a group, they currently hold 13.1 million bitcoins. However, since September, the price has risen from approximately $60000 to over $100000. The final reason is that we have historical data about another government selling a similar amount of Bitcoin. The German government sold approximately 50000 bitcoins between mid June and mid July 2023. At that time, the total value of these bitcoins was approximately $3.5 billion, while their current value is about half of it. However, the market actually reacted to the sell-off in advance and the price bottomed out around July 7th at around $55000, while the German government still holds at least 25000 bitcoins. This indicates that the quantity of Bitcoin will not dominate the market.