Bitwise CIO Reveals What Will Happen If The US Sells Its Silk Road BTC

Bitwise Chief Investment Officer (CIO) Matt Hougan has commented on what will likely happen if the US government under Joe Biden sells its $6.5 billion Silk Road BTC stash. The Bitwise CIO’s remarks come following the court’s approval for the government to sell these coins.

Bitwise CIO Comments On US Government’s Potential Bitcoin Sale

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

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

Hougan’s comments come following the court’s green light for the government to liquidate the 69,000 BTC ($6.5 billion) that it seized from the dark web marketplace Silk Road.

Meanwhile, while the US might be looking to offload these coins, other countries are looking to adopt a crypto Reserve. Bhutan’s Gelephu Mindfulness City recently announced plans to include Bitcoin, Ethereum, and BNB in its reserves.

Peter Schiff Holds A Different Opinion

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

In an X post, the renowned economist asserted that the US president-elect won’t buy these coins or even more if Biden’s government sells the BTC stash before he takes office.

Schiff also believes Biden’s government will sell these coins before January 20. He mentioned how he has been warning since the election in November last year that this current administration would sell all the US-owned BTC before Trump takes office. He added that Trump’s only campaign promise was not to sell the US-owned BTC, but he never promised to buy any more.

A $6.5 billion BTC sale by the US government could significantly impact the Bitcoin price. Interestingly, amid this potential price decline. Peter Schiff has also predicted an MSTR stock crash due to the company’s Bitcoin exposure.

Bitcoin Price Could Be Ready To Rebound

Crypto analyst Ali Martinez has provided some optimism amid the recent Bitcoin price crash. In an X post, he stated that BTC could be getting ready to rebound.

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

Meanwhile, the analyst also revealed that 66.38% of traders on Binance are betting on a Bitcoin price rebound. The analyst noted that these traders have a track record of being right.