Scott Johnsson, a general partner and general counsel at Van Buren Capital, believes that the U.S. government is on the verge of selling Bitcoin linked to the Silk Road marketplace. On August 16, he responded to a post by Joey Krug, co-founder of Founders Fund, who highlighted that over 19,000 BTC had been moved to a Coinbase address. This transfer, according to Johnsson, suggests that the U.S. Marshal Service (USMS), responsible for disposing of seized assets, is likely preparing to sell these Bitcoin assets. The U.S. government recently moved approximately $594 million worth of Bitcoin to a Coinbase Prime address. This transfer aligns with an established servicing agreement between the USMS and Coinbase made in June, which requires that assets be segregated unless they are about to be sold. Johnsson expects official confirmation of the sale in the DOJâs fiscal year 2024 report, due in January 2025.
Prediction:
If the U.S. government proceeds with selling the seized Bitcoin, it could exert downward pressure on Bitcoin's price due to the large volume being offloaded into the market. The sale might create short-term volatility, especially given the significant amount of BTC involved. Investors and traders might anticipate this move and start selling off in advance, leading to a possible decline in Bitcoin's market value. However, if the sale is well-publicized and coordinated, the market might absorb the impact without dramatic fluctuations. The move could also trigger debates on the government's role in the crypto market, especially in light of political figures like Donald Trump discussing policies on Bitcoin holdings.
