Bitwise CIO reveals what will happen if the US sells its BTC to Silk Road

Bitwise Chief Investment Officer (CIO) Matt Hougan has commented on what will happen if the US government under Joe Biden sells its $6.5 billion Silk Road BTC stash. Bitwise CIO's comments come after the court allowed the government to sell these coins.

Bitwise CIO Comments on Potential Bitcoin Sale to the US Government

In an X post, Bitwise CIO Matt Hougan said that the market will overshoot if the US government sells its $6.5 billion Silk Road stash in the remaining days of the Biden Administration.

He said the new administration, led by Donald Trump, will buy back those bitcoins if the Biden administration sells them. However, it remains uncertain whether that will actually happen, as Trump has yet to comment on this.

Hougan's comments come after the court gave the green light for the government to liquidate the 69,000 BTC ($6.5 billion) seized from the Silk Road dark web market.

At the same time, while the US may be looking to unload these coins, other countries are looking to adopt a crypto Reserve. Gelephu Mindfulness City in Bhutan recently announced plans to include Bitcoin, Ethereum, and BNB in ​​their portfolio.

Peter Schiff has a different opinion

While the Bitwise CIO believes that the Donald Trump administration will buy back these coins, Bitcoin critic Peter Schiff has said that this is unlikely.

In X's post, the renowned economist said that the US president-elect will not buy these coins or even more if the Biden government sells the BTC stash before taking office.

Schiff also believes that the Biden administration will sell those coins by January 20. He mentioned how he has been warning since the election last November that this current administration would sell all BTC in the US before Trump takes office. He said Trump's only campaign promise was to sell BTC to the US, but he never promised to buy more.

The sale of $6.5 billion BTC by the US government could have a significant impact on the price of Bitcoin. Interestingly, among this possible price decline. Peter Schiff has also predicted the crash of MSTR stock due to the company's Bitcoin exposure.

The price of Bitcoin could be ready for a rebound

Crypto analyst Ali Martinez has offered some hope amid the recent Bitcoin price crash. In X's post, he said that BTC could be preparing to go back.

For Bitcoin to move higher, the analysis revealed that it must break above $94,600. A break above this resistance level could lead to another rally to $96,300 or even $97,000.

At the same time, the analysis also revealed that 66.38% of traders on Binance are betting on the rebound of the price of Bitcoin. The analyst noted that these traders have a history of being right.

Disclaimer: The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication is responsible for your personal financial loss.