The US Department of Justice (DOJ) is set to auction off $6.5 billion worth of Bitcoin seized from Silk Road, following a legal ruling. As of January 9, the US government holds 198,000 BTC valued at approximately $18.5 billion. Some analysts suggest that the Biden administration may sell off all government-held Bitcoin before Donald Trump takes office, potentially affecting prices. Following the announcement, Bitcoin’s price dropped by 2.78%, but historically, such auctions have not had lasting impacts on Bitcoin prices. BTC’s price surged 375% even as government holdings decreased. The DOJ transfers forfeited Bitcoin to the US Marshals Service for auction, minimizing market flooding risks. Despite generating around $366.5 million from past sales, the government has missed out on nearly $17.9 billion in potential profits from its Bitcoin holdings. Experts suggest that the upcoming sell-off could be absorbed quickly by the market, recommending not to panic.

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