Bitcoin Liquidations Speculated by Bitcoin Magazine CEO

Bitcoin Magazine CEO David Bailey speculated that the U.S. Department of Justice (DOJ) may be quickly liquidating Bitcoin from the Silk Road.

In a post on March 10, Bailey suggested that these liquidations could occur despite former President Donald Trump’s pro-Bitcoin position, potentially leading to a recent drop in Bitcoin’s price. His comments sparked debates within the cryptocurrency community.

> “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 (@DavidFBailey) March 10, 2025

Some community members disputed Bailey’s view, arguing that the DOJ’s Bitcoin holdings, similar to Germany’s sales in 2024, do not have enough volume to significantly impact the market. Others indicated that broader macroeconomic factors are more influential on Bitcoin’s price.

Bailey previously suggested that Trump should allow Bitcoin payments for his “Gold Card” initiative to attract foreign investors. Although theoretical, this indicates a growing intersection of global finance, politics, and Bitcoin.

Additionally, experts have proposed selling other U.S. government-seized assets to support Trump’s Strategic Bitcoin Reserve. As of March 10, federal holdings included 60,850 Ethereum (ETH), 122 million Tether (USDT), Binance Coin (BNB), and Wrapped Bitcoin (WBTC), totaling around $125 million. It has been estimated that selling these assets could yield roughly 5,000 BTC.

Meanwhile, Real Vision analyst Jamie Coutts linked Bitcoin’s price trends to corporate bond spreads and Treasury bond volatility. He warned that Bitcoin could remain under pressure if bond spreads widen.

> “Bitcoin is like playing a game of Chicken with central banks. While my framework is turning bullish as the dollar plunges, Treasury Bond volatility (MOVE Index) and Corporate Bond spreads raise alarms.”
> — Jamie Coutts (@Jamie1Coutts) March 10, 2025

Despite concerns, Coutts emphasized reasons for optimism, including increasing nation-state Bitcoin holdings, potential ETF inflows, and the possibility that Michael Saylor’s MicroStrategy might acquire up to 200,000 BTC this year.

As the market navigates uncertainties from Trump’s economic policies, Bitcoin’s price dropped to $80,052 on March 10, reflecting a 7% decrease from the previous day. Traders are closely monitoring upcoming economic reports, such as the Consumer Price Index on March 12 and the Producer Price Index on March 13, that could impact Bitcoin’s future movements.

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