The U.S. government holds approximately $18.5 billion worth of Bitcoin (BTC) and may sell its entire stash before President Donald Trump's inauguration.
The Department of Justice (DOJ) is preparing to auction $6.5 billion in Bitcoin seized from the Silk Road platform. This move follows a December 30 court ruling, marking the end of a prolonged legal battle over Bitcoin ownership.
Potential Pre-Inauguration Bitcoin Sell-Off by US Government
According to Arkham Intelligence, as of January 9, the U.S. government holds 198,000 BTC ($18.5 billion), including the $6.5 billion portion subject to auction.
| Date | BTC Holdings | USD Value |
|---|---|---|
| 2023-03 | 236,000 BTC | $35.4B |
| 2024-01 | 198,000 BTC | $18.5B |
Some analysts speculate that the outgoing Biden administration might sell its entire Bitcoin reserve for political reasons before Trump takes office.
Fox Business commentator Jason Williams claims:
"This is a blatant distortion of government fiduciary responsibility. Selling at $94,000 now means Trump would repurchase at higher prices later."
Will DOJ's Bitcoin Sale Crash the Market?
Post-ruling, Bitcoin prices dropped 2.78%, with market fears of downward pressure from the auction. However, historical data shows minimal long-term impact:
- 375% price increase occurred despite government selling 38,000 BTC ($3.54B) since March 2023
- Strong demand from spot Bitcoin ETFs and optimism about Trump's proposed Bitcoin Strategic Reserve have buoyed prices
👉 How Bitcoin auctions actually work
Glassnode founders explain the DOJ's process:
- Seized BTC goes to US Marshals Service
- Transparent public auctions prevent exchange-driven price dumps
- No direct sales to crypto markets
$17.9B in Missed Bitcoin Profits
The government's premature sales have resulted in massive opportunity costs:
- 195,092 BTC sold for $366.5M
- Current value: $18.25B
- $17.9B profit potential lost
CryptoQuant CEO Ki Young Ju reassures:
"The market absorbs $1B daily. $6.5B sales could be digested within a week – no need for panic."
FAQs
Q: When will the Bitcoin auction occur?
A: No official date yet, but expected before January 20 inauguration.
Q: How does this affect long-term Bitcoin value?
A: Historical trends show government sales have negligible long-term impact on BTC's upward trajectory.
Q: Where can I track these auctions?
A: The US Marshals Service publishes notices at USMS.gov.
Q: Should I sell my Bitcoin holdings?
A: Market indicators suggest strong institutional demand will offset government sales.
👉 Bitcoin investment strategies during volatility
This content represents market analysis, not investment advice. Always conduct your own research before trading.