The price of Bitcoin has fallen by 2% today, with its drop to $93,522 coming after sources confirmed that the US Department of Justice has legal approval to sell 69,370 BTC.
The DoJ seized the BTC in question from the illicit Silk Road marketplace, yet it faced a legal challenge last year from private claimants who sought to block any sale.
But a judge has now struck down the claimants’ motion, freeing the US Government to sell its stash of Bitcoin, worth around $6.5 billion by today’s price.
This has amplified negative sentiment in the market today, yet the DoJ is unlikely to sell the 69,370 BTC all at once, meaning that Bitcoin’s price prediction for this year remains largely positive.
What’s Going On? Will BTC Fall to $10,000?
Chief U.S. District Judge Richard Seeborg actually issued the ruling on December 30, but it came to light only yesterday evening.
Seeborg had denied a motion from Battle Born Investments, as well as First 100 and 1st One Hundred Holdings, who had both claimed that the seized BTC belonged to them.
Well, this line of reasoning didn’t wash with Judge Seeborg, who has reaffirmed the DoJ’s right to sell the 69,370 BTC.
As noted above, the price of Bitcoin responded negatively to this news, with the coin now down by 3% in a week and by 4% in a month (while remaining up by 101% in a year).
Its chart today shows a very sudden loss of momentum in the past few days, with its indicators signaling that the coin is now very much in oversold territory.
Source: TradingView
Its RSI (purple) has touch 30, while its 30-period average (orange) is about to fall below the 200-period average (blue), forming a ‘death cross.’
Such a cross could indicate further losses, with BTC potentially on course to drop below $90,000 in the near term, before rebounding.
Yet today’s news is not all doom and gloom, insofar as the US Government will not be able to sell all of its BTC at once, since forfeiture laws dictate several more checks and procedures.
On top of this, the DoJ may have already sold around 19,800 BTC, which it moved to Coinbase in early December.
At the same time, President-elect Donald Trump has previously vowed not to sell the government’s trove of Bitcoin, while also suggesting that he would initiate plans for a US strategic reserve of BTC.
Furthermore, President-elect Donald Trump has promised not to sell the government’s Bitcoin and has suggested creating a US strategic reserve of BTC.
If Trump follows through on these promises, Bitcoin may rebound to $105,000 by the end of the month even if there are further drops in the meantime.
That said, a drop to $10,000 is unlikely unless there is a major shift in market conditions or regulatory policies.
New Meme Tokens Promise Market-Beating Gains
For any traders worried that the Silk Road Bitcoin may end up hitting the market, they may prefer diversifying into newer tokens, which don’t carry so much legal baggage.
There are a number of new coins in the market that show high potential, with several presale coins gaining lots of momentum as they prepare to list.
One of these is Wall Street Pepe (WEPE), an ERC-20 token that has raised an incredible $44.5 million in its ongoing sale.
Wall Street Pepe is more than just another meme token, with the project in the process of launching its own trade intelligence platform.
Once it platform launches, it will provide investors with real-time analysis and market insights, including buying signals and insider trading tips.
It will also operate its own online community spaces and forums, where users will be able to share advice and strategies, while also competing in trading contexts.
The winners of such contests will earn rewards in WEPE, which they will also be able to stake for a passive income.
This all promises to make WEPE very profitable, with the coin already having a strong online following, judging by its numbers on X.
Investors can join its sale by heading over to its official website, where WEPE is selling at $0.00036644.
This will rise repeatedly over the course of the sale, meaning that investors should act quickly if they want the best possible returns.
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