Bitcoin Magazine CEO David Bailey has hinted that the U.S. Department of Justice may be swiftly liquidating Silk Road BTC holdings.
In a March 10 post on X, Bailey speculated that these liquidations could occur despite former U.S. President Donald Trump’s pro-Bitcoin stance, potentially contributing to the recent drop in BTC’s price.
If the DOJ has been liquidating America’s bitcoin with haste (in defiance of the President) ever since getting court approval to do so 3 months ago… then Bitcoin’s price action makes perfect sense.
— David Bailey🇵🇷 $0.85mm/btc is the floor (@DavidFBailey) March 10, 2025
Bailey had previously proposed that Trump enable Bitcoin payments for his envisioned “Gold Card,” aimed at attracting foreign investors. Although purely speculative, the idea reflects the growing intersection of global capital flows, politics, and Bitcoin.
President Trump should accept Bitcoin paid into the SBR in exchange for the “Gold Card”
Many elites in emerging markets want to live in the U.S. but struggle to move $5M in USD out of their home countries. Bitcoin offers a simpler, safer, and more discreet solution.
— David Bailey🇵🇷 $0.85mm/btc is the floor (@DavidFBailey) March 9, 2025
Experts have raised concerns about the impact of liquidations on the market. Samson Mow suggested that the Silk Road Bitcoin Reserve (SBR) could help clarify the U.S. government’s actual Bitcoin holdings, as the amount controlled by federal agencies is uncertain due to the U.S. Marshals’ practice of auctioning seized Bitcoin.
According to available data, as of March 10, the U.S. federal government held approximately 60,850 Ethereum (worth around 125 million), 122 million Tether, and other assets such as Binance Coin (BNB) and Wrapped Bitcoin (WBTC). The federal holdings, however, continue to raise questions about their potential influence on market dynamics.
Amid the ongoing uncertainty, Real Vision analyst Jamie Coutts noted that Bitcoin’s price trends align with corporate bond spreads and Treasury bond volatility, suggesting potential pressure on Bitcoin if bond spreads widen. However, he maintains an optimistic long-term outlook for Bitcoin, highlighting positive factors such as increasing nation-state Bitcoin holdings, potential ETF inflows, and the possibility of MicroStrategy purchasing up to 200,000 BTC this year.
Recent market volatility, influenced by uncertainties regarding Trump’s economic policies and macroeconomic factors, has led to $616 million in liquidations over the past 24 hours, according to recent data from Coinglass . Long positions suffered the most, with $540.49 million in losses and Bitcoin experiencing $231 million in liquidations. On March 10, Bitcoin futures on the Chicago Mercantile Exchange opened at $82,110, down $4,320 from the previous day’s close of $86,430.
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