Bitwise CIO Matt Hougan Discusses Possible Outcomes of US Silk Road BTC Sale
Key Points:
- Bitwise CIO Matt Hougan suggests the market would absorb the BTC if the US government sells it.
- He predicts a potential buyback by Trump’s administration.
- Peter Schiff claims Biden’s administration will sell before January 20.
Matt Hougan, Chief Investment Officer (CIO) at Bitwise, shared his views on the potential sale of the US government’s $6.5 billion Bitcoin stash seized from the Silk Road marketplace. His remarks follow the court’s approval for the liquidation of 69,000 BTC.
Market Reaction and Trump’s Potential Move
In a social media post, Hougan stated that if the Biden administration sells the BTC stash, the market will “hoover it up.” He speculated that if sold, Trump’s incoming administration could consider repurchasing the coins. However, Trump has not yet made any comments regarding this scenario.
Peter Schiff’s Contrasting View
Economist Peter Schiff disagreed, arguing that Trump’s administration would not buy back the BTC. He added that he believes the Biden administration will sell the BTC before January 20. Schiff has long warned that the government might offload the Bitcoin stash before Trump’s inauguration and doubts any buyback will occur.
Global Crypto Developments
As the US considers offloading its BTC holdings, other nations are embracing crypto. Bhutan’s Gelephu Mindfulness City recently announced plans to hold Bitcoin, Ethereum, and BNB in its reserves.
Impact on Bitcoin Price
A sale of $6.5 billion worth of BTC could cause a significant price drop. Peter Schiff also predicts a potential stock crash for MSTR due to its Bitcoin exposure.
Analyst Outlook on BTC Price Movement
Despite the uncertainty, crypto analyst Ali Martinez offered a bullish outlook. He noted that for Bitcoin to rebound, it must break above $94,600, which could pave the way for further gains up to $97,000. Martinez also highlighted that 66.38% of Binance traders are optimistic about a price recovery, citing their track record of accurate predictions.
The coming weeks may prove pivotal for Bitcoin’s price trajectory as discussions about the potential BTC sale continue. 
