With Bitcoin Under The Cosh, Is Altcoin Season A-go?

Bitcoin price took a hit on January 3 after the US Department of Justice (DOJ) announced plans to sell a large portion of the Bitcoin that had been seized from the Silk Road darknet marketplace.

According to the announcement, the DOJ has been authorized by a federal judge to sell 69,370 units of Bitcoin (around $6.5 million) that were confiscated by the FBI during the 2013 shutdown of Silk Road.

The proceeds from the sale will reportedly be used to compensate the victims of the darknet marketplace, which was known for facilitating the illegal trade of various goods and services, including drugs, computer hacking, and money laundering.

The announcement also cited concerns over Bitcoin’s volatility as a key factor in pushing for a quick sale, which was approved on December 30.

Bitcoin price fell sharply following the DOJ announcement, dropping below the $94,000 level after starting the week at around $98,000. However, it later recovered some of the lost ground to trade at around $93,340 by press time.

Economist Peter Schiff commented on the recent move, expressing his belief that the DOJ's decision confirms his warnings that Trump would not be buying Bitcoin despite promising not to sell it.

With Bitcoin volatility continuing to be a major talking point, it remains to be seen how the flagship cryptocurrency will perform in the coming months, making altcoins all the more attractive.