DOJ’s $6.5bn Bitcoin Sale Triggers $1.2bn Market Chaos
By Kapil Rajyaguru
In a decision that shook the cryptocurrency world, a federal judge approved the sale of 69,370 Bitcoin—valued at approximately $6.5 billion—seized by the U.S. Department of Justice (DOJ) from the notorious Silk Road marketplace. Announced on December 30, the move marked the end of a decade-long legal saga surrounding the dark web platform infamous for illicit activities such as drug trafficking and hacking services.
The fallout was immediate and brutal. By January 8, Bitcoin ETFs recorded staggering outflows of $569.08 million—the second-highest in history—sending shockwaves across the market. The sell-off ignited panic among traders, triggering liquidations of over $631 million in leveraged long positions within just 24 hours, according to CoinGlass.
This historic sell-off signals a seismic shift in the crypto landscape as the DOJ’s decision underscores the U.S. government’s influence on decentralized markets. It also highlights the vulnerability of leveraged positions during extreme price volatility.
As the dust settles, the market remains on edge, with questions swirling about how such massive movements will shape the future of Bitcoin’s price stability. For now, the DOJ’s Silk Road Bitcoin sale has left a trail of chaos, liquidations, and uncertainty in its wake.
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