U.S. DOJ may be liquidating Silk Road BTC

In a March 10 post on X, Bailey suggested that the Silk Road ban could happen despite US President Donald Trump’s pro-bitcoin stance, which could contribute to the recent decline in BTC’s price. Bailey’s statement sparked discussion in the cryptocurrency community.

Some users dismissed the idea, arguing that the Justice Department’s holdings, like Germany’s 2024 bitcoin sale, are not significant enough to have a significant impact on the market. Others pointed to broader macroeconomic factors that have a greater impact on bitcoin’s price.

Bailey also previously suggested Trump allow bitcoin payments for a proposed “gold card” aimed at attracting foreign investors. Although the concept is purely theoretical, it reflects the growing convergence of global capital flows, politics, and bitcoin.

At the same time, some experts have suggested selling other assets seized by the US government to increase Trump’s bitcoin strategic reserves.

According to Arkham Intelligence, as of March 10, the federal government held about $125 million, $122 million in Tether and other assets such as Binance Coin and Wrapped Bitcoin. Proponents of the idea said these assets could provide an additional 5,000 BTC if liquidated.

Meanwhile, an analysis of the macroeconomic environment by Real Vision analyst Jamie Coutts found that bitcoin's price trend is in line with corporate bond spreads and Treasury bond volatility. He warned that risky assets such as bitcoin could come under more pressure if bond spreads continue to rise.

But he remained optimistic and pointed to factors such as a rise in government-backed bitcoin holdings, potential ETF inflows and the possibility of Michael Saylor's MicroStrategy buying up to 200,000 BTC this year.

As the market reacts to the uncertainties surrounding Trump's economic policies, Bitcoin's price fell by 7% to $80,052 on March 10 compared to the previous day. Traders are now looking at key economic reports, including the CPI on March 12 and the PPI on March 13, which could influence Bitcoin's next move.