Original article: https://hive.blog/bitcoin/@geekgirl/69-000-bitcoins-in-play-is-the-doj-preparing-a-massive-crypto-sell-off
Something strange happened in the last couple of days. The news of U.S. Department of Justice potentially selling 69k of confiscated bitcoins circulated around the webs. The news was everywhere and definitely had its influence in the bitcoin and crypto prices dropping in price. I don't really care if a government agency or anybody decides to sell their bitcoins or not. However, the timing of this news and the intent to sell these bitcoins is really really strange. This is happening a couple of weeks before the new administration will move into the White House. It is strange because it is well known by now that upcoming administration is bitcoin and crypto friendly and president Trump has made it clear that he has no intentions of selling any bitcoins. Now, there have been talks of the U.S. potentially adopting a bitcoin stockpile or bitcoin strategic reserve policy. It is debatable it would ever happen and may actually not be an easy thing to do. However, it is easy to keep the simple promise of not selling any bitcoins and leave them be. Why would DOJ want to sell bitcoins now?
As of now, I don't think DOJ sold any bitcoins, and we don't really know if this is actually going to happen. What we know is that DOJ did ask the court to grant them a permission to sell these bitcoins, and judge approved the request at the end of December 2024. It is reasonable to think DOJ may as well sell these bitcoins. Why would they want to do this though? The U.S. had/had 200k bitcoins and haven't been selling them for a very long time. Now why would you do that all of the sudden. Sure the amount may seem to be big that it could influence the price action. There are no benefits of selling them. 69k bitcoins would result in about $6.5 billion dollars, which is nothing for the U.S. government. If the idea is to hurt Trump's bitcoin and crypto plans, then it is just childish behavior. That's why it is so strange.
Haven't we already seen a government selling massive amounts of bitcoins and regretting shortly after. Remember when Germany sold 55k bitcoins? If they held it for a little bit longer the value of these assets would have doubled. They may end up buying back at much higher prices. I can see how the price of bitcoin may drop more and drop big. But usually when prices go down those who sell tend to stay away. I am ok if countries decide to sell their coins. In a long run this doesn't do any damage to the bitcoin economy and only helps those who stack to get more cheaper coins. Bitcoin may go lower and lower. Which is completely ok, because we know that bitcoin always goes back to its previous high prices. I don't know if DOJ will actually sell 69k coins. But there is a lot if time left for them. If they are determined, they should act fast. It would go into history as a very stupid and incompetent move by DOJ. Not because they made this decision. They made it when they completely didn't have to. In fact, any professional in this situation would just wait and see what the next administration wants to do.
Will prices go down even more if this sell off happens? Yes, of course. But I am sure there will be deep pocket money managers ready to take these coins off DOJ's hands. Another well known fact about bitcoin is its scarcity. Those who know, will keep stacking as long as they can, as much as they can. MicroStrategy, BlackRock, Fidelity, and many others will be happy to get more bitcoins at cheaper prices. Depending on the price, there will be many retail traders acquiring as well. While everybody's buy target's may differ, everyone has one. I would buy more at $45k. I don't know if we would see these prices, and I would see it as an opportunity to get more Sats.
I experienced two more strange events regarding bitcoin. Two of my friends at different occasions, different time, and different made statements about bitcoin that made me think that there is still more educational work needed for bitcoin to be properly understood. Bitcoin is a global phenomenon. Everybody around the world have heard about bitcoin, everybody have a little bit of understanding about bitcoin as something digital. However, many are still confused. Two people I talked to about bitcoin recently said almost the same thing, that bitcoin investment won't end well and many would end up losing. That too is really strange for me. These people do not have a good understanding of bitcoin but know a little bit to have strong opinions. One of them is a expert in finance, have served as CFO in couple of companies and now is a CEO of an energy company. The other person is into technology and has really good understand of technologies. Imagine this, two people who are really smart in their fields, finance and technology, do not really have a good understanding of bitcoin. At least it seems so.
This wasn't a debate, but I was curious what they had to say about it. Technologist said bitcoin is a bubble and repeated what many have said in 2017 and compared it to the tulip bubble. Wow, really? Tulip bubble or any other kind of bubble comparisons were already debunked many times. Bitcoin itself have proven this bubble talk just doesn't apply. Nobody argues that bitcoin is not volatile asset. In a long run any bubble comparisons end up being wrong. Mark Cuban called bitcoin a bubble when it reached $5k first time. Can we imagine $5k bitcoin prices now? Can this happen? I doubt it. There many with much higher buy targets. I am disappointed that a technologist cannot see the beautiful technology in bitcoin. So strange. It is even more strange how a person who dedicated their career to finance and had been very successful still cannot see the financial benefits, use, innovation in bitcoin. Even if you don't agree with decentralized standards, you should be able to recognize how bitcoin changed minds about how people think about money and possibilities of better financial systems.
While bitcoin have accomplished a lot and reshaped how we think about money, there is still more work to be done when it comes to educating the masses. It took me a very long time to understand bitcoin, how it works and its benefits. There was a time when first got interested in bitcoin and had no understanding about it, I came across a discussion forum during a bear market. Majority of the discussion was very negative about bitcoin and how it was a scam. Because I didn't really understand it, I ended up walking away from bitcoin. If that discussion offered more educational and truthful information about bitcoin, I could have invested early on. Of course it is all my fault for not doing proper research. Even when I did, it still wasn't easy to understand. It took me a while how this network worked, how bitcoin was created, and how it achieved decentralization. Eventually, years after the initial introduction I did get much better understanding. The point I am trying to make is, while the technologies seems so simple and no brainer, it require time to truly get to know it because what we are used to is so different. I guess that is one of the features of innovation.
Bitcoin is the way!
