Bitcoin Silk Road Sales Would Affect Leverage Traders More Than Holders, Analyst Argues

Reports of the U.S. possibly liquidating most of its Bitcoin holdings seized from the Silk Road darknet marketplace may be more impactful for short-term traders than for long-term spot holders, according to a market analyst.

What Happened: Pseudonymous cryptocurrency analyst Kun stated on X on Thursday that this type of news tends to cause mass liquidations in the derivatives markets due to increased volatility, but doesn’t necessarily have a negative impact on the underlying value of the asset for spot holders.

The U.S. Department of Justice has received clearance from a federal judge to sell 69,370 Bitcoin (CRYPTO: BTC), valued at roughly $6.5 billion, justified …

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