Despite Bitcoin’s attempts to surpass $40,000, recent news may hinder its progress. The cryptocurrency market has been under pressure due to several events. Although concerns regarding Tether and Binance have largely subsided, the pressure from MTGOX and the Silk Road case persists.
MTGOX has started sending notifications to creditors this week, while the US government announced that it will auction off $130 million worth of Bitcoin seized during the Silk Road operation. The announcement is a call for potential claimants to come forward. If no claims are made, the sale is expected to happen within two months.
It is unlikely that claims will be made on the Silk Road assets since they were seized during a Dark Web operation. Therefore, the US is anticipated to proceed with the sale before April. Although the amount could negatively impact the market in the short term, it is relatively small compared to the redemptions of GBTC, suggesting that investors should not panic.
The main concern is whether the US will decide to sell other Bitcoin holdings (worth billions of dollars) this quarter. Additionally, the expected completion of the MTGOX distribution by the end of the year will exert billion-dollar pressure on the market.