Bitcoin News: US Government Could Sell 69,000 BTC, Dampening Market Mood

The US government could soon sell over 69,000 BTC following the Supreme Court's denial of a certiorari petition in the Battle Born Investments case

Several bullish Bitcoin news have emerged in recent days, but a recent Supreme Court decision may dampen the mood as the US government is now clear to proceed with the sale of 69,370 BTC linked to the Silk Road marketplace. This is important because a sale of this magnitude could put massive selling pressure on the flagship crypto.

Bitcoin News: US Government Can Sell 69,000 BTC

The US government could soon sell over 69,000 BTC after the Supreme Court declined to grant certiorari in the Battle Born Investments case against the United States. This Bitcoin news could have a negative effect on the Bitcoin price, as such a sale would put significant selling pressure on the flagship crypto.

The case pertains to the ownership of 69,370 bitcoins ($4.4 billion) that were linked to the Silk Road Marketplace. The government initially seized these coins from ‘Individual X’ as part of the forfeitures from the dark web marketplace.

The Northern District of California also ordered these coins forfeited in 2022. However, Battle Born Investments appealed to the Supreme Court to claim ownership of these coins, which is why the sale of these coins has been put on hold until now.

The firm, which purchased bankruptcy claims following Silk Road’s collapse, claimed that they owned the bitcoin that ‘Individual X’ stole from the dark web marketplace. However, the Supreme Court chose not to hear Battle Born’s appeal, despite their claims to be the innocent owner of Silk Road’s property, including the 69,370 BTC stolen by individual X.

Supreme Court Order Gives Government the Green Light

The US Supreme Court’s denial of the petition for certiorari leaves the forfeiture order from the Northern District of California as the law. Thus, this gives the government the green light to sell these coins.

While this Bitcoin news may seem bearish for the flagship crypto, it is worth noting that there are still formalities that the US Marshals or any other agency looking to liquidate these coins must follow.

In related news, instead of selling these bitcoins, Democratic Representative Ro Khanna said the US government should keep seized bitcoins as a strategic reserve asset. Republican presidential candidate Donald Trump has also promised to create a Bitcoin strategic reserve if elected President. Given how much BTC the US government holds from seizures, Trump could decide to follow Khanna’s lead.

According to Bitcoin Treasuries data, the US is the largest Bitcoin holder among world governments, with 203,239 BTC. Notably, the bulk of these coins are from the Silk Road marketplace.

Any potential Bitcoin news regarding the US government selling any of these coins will harken back to the German government’s sale of nearly 50,ooo BTC in June and July of this year. That move saw the Bitcoin price drop below $55,000 at the time.

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