Bitcoin Magazine CEO David Bailey has speculated that the U.S. Department of Justice (DOJ) might be rapidly liquidating Bitcoin (BTC) seized from the Silk Road, potentially contributing to the recent market downturn. Bailey’s comments, made in a March 10 post on X, ignited discussions within the crypto community regarding the government’s influence on Bitcoin’s price action.
DOJ’s Alleged Bitcoin Sell-Off
Bailey suggested that despite U.S. President Donald Trump’s pro-Bitcoin stance, the DOJ may have been offloading seized Bitcoin following court approval three months ago.
“If the DOJ has been liquidating America’s bitcoin with haste (in defiance of the President) ever since getting court approval to do so… then Bitcoin’s price action makes perfect sense.” — David Bailey (@DavidFBailey), March 10, 2025
Some in the crypto community dismissed Bailey’s claims, arguing that the DOJ’s Bitcoin holdings, similar to Germany’s 2024 BTC sales, lack the volume necessary to significantly impact the market. Others pointed to broader macroeconomic factors as the primary driver of Bitcoin’s recent price movements.
Broader Government Crypto Holdings
Meanwhile, some experts have proposed that instead of selling Bitcoin, the U.S. government should liquidate other seized assets to fund Trump’s Strategic Bitcoin Reserve. According to data from Arkham Intelligence, as of March 10, the federal government holds:
- 60,850 Ethereum (ETH) (~$125 million)
- 122 million Tether (USDT)
- Other assets, including Binance Coin (BNB) and Wrapped Bitcoin (WBTC)
If these holdings were liquidated, proponents argue that they could provide an additional 5,000 BTC for the reserve.
Macroeconomic Impact on Bitcoin’s Price
Beyond government activity, macroeconomic conditions have also weighed on Bitcoin. Real Vision analyst Jamie Coutts highlighted that Bitcoin’s price trends align with corporate bond spreads and Treasury bond volatility. He warned that if bond spreads continue to widen, risk assets like Bitcoin could face further downward pressure.
“Bitcoin is like playing a game of Chicken with central banks.” — Jamie Coutts (@Jamie1Coutts), March 10, 2025
Despite these short-term concerns, Coutts remained optimistic, citing several bullish indicators:
- Growing nation-state Bitcoin holdings
- Potential ETF inflows
- MicroStrategy’s BTC accumulation, with Michael Saylor’s firm possibly acquiring up to 200,000 BTC in 2025
Bitcoin’s Market Reaction
As uncertainty surrounding Trump’s economic policies continues, Bitcoin’s price fell to $80,052 on March 10, marking a 7% decline from the previous day. Traders are now closely watching upcoming economic data releases, including:
- Consumer Price Index (CPI) – March 12
- Producer Price Index (PPI) – March 13
These reports could provide further insight into inflation trends and influence Bitcoin’s next price move. As the debate over the DOJ’s Bitcoin liquidation persists, market participants remain focused on how both macroeconomic conditions and institutional actions will shape the crypto landscape in the coming months.
