Bitcoin (BTC-USD) fell by around 3% on Thursday as traders reacted to reports that the US government has allegedly received final approval to sell a large cache of bitcoin that was seized from the Silk Road darknet marketplace.
Bitcoin’s price was $93,540 (£76,198) on Thursday, according to CoinGecko data. The broader cryptocurrency market also saw a downturn, with the total market cap falling 3.3% to $3.42tn.
Investors are worried that a sale of the government’s bitcoin stash — valued at approximately $6.5bn — could trigger market volatility and impact cryptocurrency prices.
The US Department of Justice (DOJ) reportedly secured authorisation from the Northern District Court of California to liquidate 69,370 bitcoin, marking the closure of a complex, multi-year legal battle over one of the largest cryptocurrency seizures in history, according to the DeCrypt news outlet.
Read more: Crypto live prices
The court ruling was handed down by chief US district judge Richard Seeborg, who denied a motion to block the forfeiture of the assets, according to a court document filed on 30 December 2024.
The court’s decision potentially clears the way for the DOJ to proceed with the sale, though federal asset liquidation processes typically require multiple administrative steps. Historically, large asset liquidations by government agencies have been carried out gradually to avoid significant market disruptions.
The resolution comes at a politically sensitive time for…
