Bitcoin Magazine CEO David Bailey Speculates That the U.S. Department of Justice Might Be Rapidly Conducting Silk Road BTC Liquidations

In a Mar. 10 post on X, Bailey suggested that Silk Road liquidations could be happening despite U.S. President Donald Trump's pro-Bitcoin stance, potentially contributing to the recent downturn in BTC's price.

Bitcoin Magazine CEO David Bailey has speculated that the U.S. Department of Justice might be rapidly conducting Silk Road BTC liquidations, which could be contributing to the recent downturn in BTC's price despite U.S. President Donald Trump's pro-Bitcoin stance.

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.

Some users have rejected the notion asserting that the DOJ's holdings, just like Germany's 2024 Bitcoin sales, lack enough volume to have a substantial effect on the market. Others pointed to broader macroeconomic factors as having a greater impact on Bitcoin's price.

Bailey has also previously suggested that Trump should enable Bitcoin payments for his proposed "Gold Card," aimed at attracting foreign investors. Though entirely theoretical, the concept shows the converging roles of global capital flows, politics, and Bitcoin.

At the same time, some experts have proposed selling off other assets seized by the U.S. government to prop up Trump's Strategic Bitcoin Reserve.

As of March 10, the federal government held 60,850 Ethereum (ETH), approximately $125 million, 122 million Tether (USDT), and other assets such as Binance Coin (BNB) and Wrapped Bitcoin (WBTC), according to data from Arkham Intelligence.

Those in favor of the idea have highlighted that these holdings could provide an additional 5,000 BTC if they are liquidated.

Meanwhile, Real Vision analyst Jamie Coutts's analysis of the macroeconomic landscape revealed that Bitcoin's price trends align with corporate bond spreads and Treasury bond volatility.

Risky assets like Bitcoin may be facing more pressure if bond spreads continue to expand, he cautioned.

Bitcoin is like playing a game of Chicken with central banks. While my framework is turning bullish as the dollar plunges, two metrics still raise alarms: Treasury Bond volatility (MOVE Index) and Corporate Bond spreads. In this thread, I'll explain how these factors interact...

But he remained optimistic, mentioning factors such as increasing nation-state Bitcoin holdings, potential ETF inflows, and the possibility of Michael Saylor's MicroStrategy buying up to 200,000 BTC this year.

As the market continues to respond to the uncertainties surrounding Trump's economic policies, the price of Bitcoin fell to $80,052 on Friday, representing a 7% decrease from the previous day. Traders are now keeping an eye on key economic reports, including the Consumer Price Index on Monday and the Producer Price Index on Tuesday, which could influence Bitcoin's next move.