- Bitcoin faces a -2.3% dip to $93,532 amidst DOJ’s planned Silk Road Bitcoin sale and MicroStrategy’s reduced purchases.
- The DOJ prepares to unload $6.5B in Bitcoin, potentially causing market volatility.
- MicroStrategy’s Bitcoin acquisition strategy shifts with smaller purchases but a larger total holding.
Bitcoin’s price has experienced a -2.3% retracement, slipping to $93,532. This decline comes as two major institutional developments unfold. First, the US Department of Justice (DOJ) is preparing to liquidate approximately $6.5 billion worth of BTC seized from the Silk Road. Meanwhile, MicroStrategy, under Michael Saylor’s leadership, continues its Bitcoin accumulation but at a slower pace, purchasing 1,070 BTC worth $101 million.
DOJ’s Silk Road Bitcoin Sale
According to the report by IntotheBlock, The DOJ’s planned liquidation of BTC seized from the Silk Road is causing concern in the market. The Silk Road, shut down in 2013 for facilitating illegal transactions, had a significant stash of Bitcoin that the DOJ now controls.
The government holds around 198,000 BTC, valued at nearly $18 billion. As the DOJ moves forward with the sale, there’s an expectation that the market could face volatility. While the market is large enough to absorb such a sale, traders are alert for any price dips that may occur.
MicroStrategy’s Strategic Adjustments
On the other side of the spectrum, MicroStrategy continues its BTC acquisition but at a notably slower rate. The company purchased 1,070 BTC in late December 2024, spending about $101 million. This was their first purchase of the year, adding to their existing position of 447,470 BTC, which represents around 2.1% of the total Bitcoin supply.
While the company’s total investment in Bitcoin has reached $42.2 billion, the size of each purchase has significantly decreased compared to previous acquisitions. This may suggest a more cautious approach to market participation, likely due to shifting market conditions or limited cash availability.
Balancing Institutional Forces
The market is currently balancing two major institutional forces: the DOJ’s impending BTC liquidation and MicroStrategy’s calculated accumulation strategy. The DOJ’s sale could introduce short-term volatility, but Bitcoin’s market has matured enough to handle such large transactions.
Despite its reduced purchase size, MicroStrategy remains a key institutional player, showing a more deliberate approach to accumulating Bitcoin. The outcome of the DOJ sale will be crucial in determining the short-term direction of BTC’s price as the market adjusts to these competing influences.
