The US government’s custody of 69,370 Bitcoins seized from Silk Road has triggered market speculation, with Peter Schiff taking jabs at Michael Saylor.
As the US government takes full custody of 69,370 Bitcoins seized from the infamous Silk Road marketplace, valued at approximately $4.38 billion, speculation has erupted across the crypto world. In July, Bitcoin critic Peter Schiff suggested that the government may be gearing up to liquidate its holdings ahead of the upcoming US Presidential Elections, drawing parallels to Germany’s crypto sell-off earlier this year.
Schiff, known for his bearish stance on Bitcoin BTC $94 101 24h volatility: 0.8% Market cap: $1.87 T Vol. 24h: $24.99 B , has now taken the opportunity to mock MicroStrategy’s Michael Saylor. Saylor, a vocal Bitcoin advocate, has consistently increased MicroStrategy’s BTC holdings through debt issuance.
In a recent post, Schiff teased:
“I think Michael Saylor should have MSTR borrow another $4.3 billion and buy it. Who agrees with me?”
Currently, the US government holds a total of 203,239 Bitcoins, worth over $12.63 billion, as reported by Arkham Intelligence. Selling 69,370 BTC would amount to nearly one-third of the government’s crypto stash.
These assets remained untouched for over four years as legal battles surrounding the Silk Road raged on. However, a recent US Supreme Court ruling on October 7 has granted the government full control over the Bitcoins, allowing it to decide how and when to proceed with any potential sale.
MicroStrategy’s Bitcoin Play
Schiff’s jab, though lighthearted, raises an important question: Will Saylor move to purchase these seized Bitcoins?
Saylor’s company, MicroStrategy, has been outperforming Bitcoin itself this year, riding high on its massive crypto investments. With over $15 billion in Bitcoin, the company’s acquisition strategy has proved highly successful thus far. If the US government does proceed with a sell-off, it will be interesting to see if Saylor seizes the opportunity to bolster his firm’s holdings even further.
Earlier this year, in July, the US government moved $2 billion worth of Bitcoin linked to the Silk Road seizure. The possibility of another sale on such a massive scale has traders bracing for potential market turbulence. Some speculate that Bitcoin’s price could dip to as low as $50,000 in the event of a large-scale liquidation.
Election Season
As the 2024 US Presidential Elections draw closer, the possibility of a major Bitcoin sell-off becomes even more intriguing. Peter Schiff’s comments have stirred conversation, but many in the crypto community believe the current administration is unlikely to sell Bitcoin before the election. Doing so could anger a growing base of crypto-friendly voters, potentially swaying the outcome in key battleground states.
Kamala Harris, currently positioned as a leading candidate, has been working on a “crypto reset” policy that could be jeopardized by a pre-election Bitcoin sale.
Meanwhile, former President Donald Trump has openly stated that, if elected, he would push to make Bitcoin a strategic reserve asset for the US, positioning the nation as a global leader in the crypto space.
Nonetheless, Blockstream CEO Adam Back believes that any government sell-off would be a massive buying opportunity for long-term holders.
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