The US government has announced its intention to dispose of approximately 2,875 Bitcoins seized from individuals engaged in illegal activities in 2021. The details of the seizure notice included details that a total of $133 million in BTC was seized from people who sold illegal drugs through Silk Road. The government also gave people claiming rights to the relevant Bitcoin 60 days to apply. This has led to the assumption that the Bitcoin seized will not be sold for at least two more months.
BTC seized from Silk Road is a matter of concern in the market
The U.S. government's decision to sell BTC seized in 2021 follows a major development related to Silk Road, a crippled platform where illicit trade in the past years revolved largely around Bitcoin. Last month, a court approved the transfer of 69,370 Silk Road-linked BTC into the custody of US law enforcement agencies.
The large amount of Bitcoin in the possession of the US government has been unsettling crypto markets for many years. Experts warn that if the US sells BTC in bulk, serious fluctuations could occur in the market. In previous developments, various speculations that the government was selling BTC had a significant impact on the Bitcoin market.
As a result, while the US government stands as one of the largest Bitcoin holders in the market, both the sale and rumors of the sale of these crypto assets have the potential to have a negative impact on the markets.
