Analytics firm CryptoQuant opines that the potential sale of Silk Road-related Bitcoins by the U.S. government will have negligible market impact long-term.
Long-term Impact
CryptoQuant highlights that the realized cap of Bitcoin, a metric showing the value of all coins at the price when last moved on-chain, stands at $381.7 billion. The selling pressure from Silk Road-linked coins would amount to $6.5 billion, indicating insignificant long-term market impact.
Short-term Consequences
The sale of these coins will have little market impact short-term if conducted via an over-the-counter (OTC) desk. However, if transactions occur through exchanges, they could noticeably affect the market.
Legal Aspects
As reported earlier, the U.S. government obtained a court order to liquidate 67,000 coins handed over by the mysterious 'Individual X,' who hacked the now-defunct Silk Road marketplace over a decade ago. In November 2020, the government filed a civil action to forfeit several thousand Bitcoins linked to 'Individual X,' marking the largest cryptocurrency confiscation by the government to date. Recently, the court ruled against claimants seeking disclosure of the hacker's identity.
CryptoQuant's analysis suggests that while the potential sale of Silk Road-linked Bitcoins will exert some pressure, its market impact will be limited, especially in the long-term perspective.
