David Bailey, CEO of Bitcoin Magazine, has raised the possibility that the U.S. Department of Justice may be swiftly liquidating Silk Road BTC.
In a post dated March 10 on X, Bailey indicated that these Silk Road asset liquidations could be occurring despite U.S. President Donald Trump’s pro-Bitcoin viewpoint, which may be a factor in the recent decline in BTC prices. This assertion has ignited conversations within the crypto community.
However, some users have dismissed this idea, arguing that the DOJ’s Bitcoin holdings, similar to Germany’s 2024 Bitcoin sales, do not have sufficient volume to significantly impact the market. Others have pointed to larger macroeconomic factors as being more influential on Bitcoin’s value.
Previously, Bailey suggested that Trump should consider accepting Bitcoin payments for his proposed “Gold Card,” intended to attract international investors. Although purely hypothetical, this notion highlights the growing intersection of global capital, politics, and Bitcoin.
Simultaneously, some analysts have put forth the idea of liquidating other assets seized by the U.S. government to bolster Trump’s Strategic Bitcoin Reserve.
As of March 10, the federal government was reported to hold 60,850 Ethereum (ETH), approximately $125 million, 122 million Tether (USDT), and various other assets, including Binance Coin (BNB) and Wrapped Bitcoin (WBTC), according to Arkham Intelligence data. Proponents argue these holdings could yield an additional 5,000 BTC if liquidated.
Meanwhile, Real Vision analyst Jamie Coutts has analyzed the macroeconomic environment, finding that Bitcoin’s pricing trends are correlated with corporate bond spreads and Treasury bond volatility. Coutts warned that if bond spreads continue to widen, risky assets like Bitcoin could face increased pressure.
Despite these concerns, he remains optimistic, noting factors like increasing nation-state Bitcoin holdings, potential ETF inflows, and the possibility of Michael Saylor’s MicroStrategy acquiring up to 200,000 BTC this year.
As the market reacts to uncertainties related to Trump’s economic policies, Bitcoin’s price fell to $80,052 on March 10, marking a 7% drop from the previous day. Traders are now closely monitoring significant economic indicators, including the Consumer Price Index on March 12 and the Producer Price Index on March 13, which may influence Bitcoin’s forthcoming movements.
