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The Supreme Court has declined a certiorari that might ultimately permit the US authorities to sell 69,000 BTC. The Supreme Court has dismissed a Certiorari petition and this opens the US Government to sell 69,370 BTC. These are part of the bitcoins which have been confiscated for the Silk Road marketplace. The sale could disrupt the Bitcoin price to an extent that is unimaginable without adequate precaution.
These past few days were filled with several bullish Bitcoin news. However, a recent Supreme Court ruling could not bring the same kind of joy as the US government has gotten the clear to proceed with selling 69,370 BTC associated with the Silk Road marketplace. This is important mainly because such a sale can create tremendous sell-side pressure on the flagship crypto.
Bitcoin News: US Government Possibly Sell 69,000 BTC
This is because the US government could soon sell over 69,000 BTC after the Supreme Court declined a Battle Born Investments’ certiorari petition against the United States. This Bitcoin news could reduce the overall price of Bitcoin. Such a sale will bring a lot of selling pressure for the flagship cryptocurrency on the marketplace.
This case concerned 69,370 bitcoins equivalent to $4.4 billion of the Silk Road marketplace. The government had first confiscated these coins from ‘Individual X’ as part of the forfeitures made from the dark web marketplace.
The Northern District of California also ordered these coins to be forfeited in 2022. However, the sale of such coins has been on hold particularly because Battle Born Investments went to the Supreme Court to prove ownership of these coins, which prompted this appeal.
The firm, which bought up bankruptcy claims after Silk Road’s shutdown, claimed they were the rightful owners of the bitcoin taken by ‘Individual X’ from the dark web marketplace. Nevertheless, the Supreme Court decided not to hear the appeal of Battle Born who claimed they were the rightful owner of the property of Silk Road, including 69,370 BTC taken by the individual X.
Supreme Court Order Gives The Government The Go-Ahead
The denial of their petition for certiorari, by the US Supreme Court means that the Northern District of California’s forfeiture order is still in force. Therefore, this allows the government permission to sell these coins.
However, instead of economically liquidating these bitcoins, Democratic Representative Ro Khanna urged that such bitcoins should be retained as a reserve. Another feller to express such intentions is the leader of the Republican party and a presidential candidate Donald Trump. Looking at the amount of BTC the US has through seizures, Trump can follow Khanna’s advice.
The latest data regarding Bitcoin Treasuries indicate that the USA tops the list of world governments as the biggest holder of the BTC with 203,239. Notably, 95 percent of these coins are derived from the Silk Road marketplace.
Any possible Bitcoin news involving the US government selling any of these coins will evoke the nearly 50,ooo Bitcoins the German government sold between June and July this year. It therefore led to the Bitcoin price falling to below $55000.
However, regarding such Bitcoin news that gives a bearish outlook for the flagship crypto, it is important to remember that there are still procedures any agency including the US Marshals will need to go through.
Impact on Bitcoin Market Sentiment
This potential has made some investors and analysts worried due to the actualization of 69,370 BTC. As the market prepares for this increased selling pressure many people will feel that it could ultimately lead to a sell-off of these coins that is as destructive to the value of Bitcoin as those previously seen.
Though cryptocurrency is different from traditional assets, market sentiment plays an important role because the investors’ fear impacts prices that react with high volatility. Traders might be inactive and passive and only wait for a clear situation which will most probably lead to low trading volume. This could further intensify the selling pressure on Bitcoin as more traders begin to dump them for expecting a certain shift in trend.
Regulatory Implications and Future Sales
Apart from the dire financial effects, this and subsequent rulings encourage the U.S. government to control, manage, and consolidate acquired digital currencies properly. This may trigger further talk regarding the regulatory measures that continue to surround the digital currency with large amounts of Bitcoin being sold on the market. While politicians and regulatory bodies are discussing the consequences of these sales, they may also look at ways of hedging the market, for example, by regulating huge sales that would jeopardise the market’s stability.
Taking into account the recent conversation between politicians including Ro Khanna and Donald Trump, it means that this theme may become even more popularized and may result in the creation of new policies that will help to better regulate those digital assets owned by the government, as well as to consider the main concerns of the crypto community.
