U.S. DOJ Approved to Sell 69,370 Bitcoin, Sparking a Crypto Crash
The 11% rise in cryptocurrencies at the beginning of 2025 came to an abrupt end, and the market experienced another 5% drop this week, with Bitcoin, Ethereum and XRP falling sharply.
The cryptocurrency decline comes after the U.S. Department of Justice (DOJ) was granted permission to sell 69,370 Bitcoins seized from the notorious Silk Road darknet market. According to databaseThe crypto asset has a commercial value of approximately $6.5 billion, and Bitcoin collections have been at the center of a protracted legal battle.
The court’s Dec. 30 ruling rejected claims by Battle Born Investments, which had sought ownership through the bankruptcy estate and attempted to delay the sale.
Why sell now?
After a lengthy legal tug-of-war, a federal judge finally gave the Justice Department the green light to profit from cryptocurrencies. The U.S. Department of Justice justified the liquidation, citing concerns about Bitcoin price volatility and the risk of losing value if the asset is held for too long. A spokesman confirmed the department intends to sell in accordance with the court ruling. The U.S. Marshals Service is expected to manage the liquidation process in what could become one of the largest crypto asset sales in history.
The decision came after the U.S. Supreme Court declined to hear an appeal last October challenging the seizure. Battle Born also requested under the Freedom of Information Act to reveal the identity of “Individual X” who originally handed over the Bitcoins, but this effort also failed.
News that Trump was selling assets ahead of his inauguration on January 20 caught the attention of cryptocurrency investors and left the market somewhat unsettled. Crypto assets are already facing a downward trend due to the impact of the Federal Open Market Committee (FOMC) meeting.
crypto reaction
The market’s reaction to the news was immediate, with Bitcoin’s price falling nearly 3%, from $95,000 to $93,800 before stabilizing around $94,300. Analysts said such a large-scale liquidation could add downward pressure on the market and raise concerns about the broader impact on Bitcoin’s price stability.
A crypto user is called Defi bank There are hints of political motivations behind the Justice Department’s plan to sell 69,000 Bitcoins, suggesting that the profits could go to Ukraine. Moves pushed by the Biden administration to clamp down on Bitcoin.
The Justice Department’s move underscores its focus on resolving high-profile crypto cases and recovering assets related to illegal activity. While the government has yet to issue an official statement, it is a reminder for the crypto world that even digital assets are not beyond the reach of the law.
While the outcome of the case will set a precedent for future crypto cases, the government’s sell-off could also create massive liquidity problems, which many fear is Biden’s planned strategy to thwart Trump’s Bitcoin reserve plan. There are rumors in the market that this is a plan to lower the price of Bitcoin, as many analysts also believe that it is a ploy to manipulate the price of Bitcoin.
