The US Department Of Justice (DOJ) has been cleared to sell 69,300 Bitcoin (BTC) worth nearly $6.5 billion. The BTC was seized from Silk Road, the now defunct dark web black marketplace.

Also Read: Microsoft (MSFT) Gets $650 Target as Analysts Project Historic 2025

How Was The DOJ Cleared To Sell The Seized Bitcoin?

The ownership dispute of the $6.5 billion worth of BTC was ongoing for years between the DOJ and Battle Born Investments. Battle Born lost its bid to delay the sale. According to Battle Born’s attorney, the development is “another egregious example of the DOJ’s abuse of the Civil Asset Forfeiture process.“

The DOJ cited Bitcoin’s (BTC) price volatility as its reasoning for selling the seized assets. According to a DOJ spokesperson, “The Government will proceed further consistent with the judgment in this case.“

Also Read: Nvidia, Amazon Lead Magnificent 7 Stocks to Watch in January

Will The Market Face Another Correction?

The cryptocurrency market has faced a significant correction in the last few weeks. Bitcoin (BTC) fell below $94,000 in December 2024 after inflation in the US increased to 2.7%. The Federal Reserve took a hawkish stance with its monetary policy to combat rising inflation figures. The Fed announced only two interest rate cuts in 2025 instead of three.

The market faced another correction in January after US Jobs data came in better than expected. The development thwarted hopes for an early interest rate cut.

Also Read: Advanced Micro Devices (AMD) Lends a Boost to This AI Stock

If the DOJ sells $6.5 billion worth of Bitcoin (BTC), we may face another market dip. Market participants may become weary about investing in BTC and other risky assets.

President-elect Donald Trump is a vocal supporter of Bitcoin (BTC) and the cryptocurrency industry. The market may stabilize once he assumes office. Trump’s inauguration is on Jan. 20, 2025. We may see some relief later this month, given investor sentiment improves.