As I predicted the Bitcoin price hit 550 USD early this morning (EST). Even though the price trend looked to be bearish, the price drop of more than 60 USD per BTC that we experienced today was probably mainly caused by US Marshal. In an announcement made for 11 hours ago, US Marshal explains that they will auction of the seized silk road bitcoins in an auction that will end on Monday 30th of June. This caused the Bitcoin price to take a plunge.
US Marshal will auction off 29,656.51306529 bitcoins and they are accepting offers based on these terms:
A manually signed pdf copy of the Bidder Registration Form
A copy of a Government-issued photo ID for the Bidder (or Control Person(s) of Bidder)
$200,000 USD deposit sent by wire transfer originating from a bank located within the United States (please provide receipt of transfer)
So if you have the funds for buying 29,656.51306529 at a discounted price (most likely), then go for it. It might be worth the hassle.
What is interesting about the move from US Marshal is that by doing a legal auction of bitcoins, they do legalize the use and trading of Bitcoin. Not in a formal way, but why would the US Marshal sell bitcoins if other authorities in the US would prohibit the use of Bitcoin? US Marshal do not auction of drugs or guns, but they auction of bitcoins. This could be a pointer of where the authorities in the US are heading when it comes to Bitcoin legalization (regulation).
Or, the different departments could all be non-communicating, meaning that the US Marshal move has not been influenced by any other party. If this is the case, there is no way to tell what other institutions might do regarding Bitcoin. It can go both ways.
Bitcoin Price Rebounds
If you look at the graph below, the price hit 550 USD twice at around 00:00 today EST time. It has then rebounded to about 600 use per Bitcoin. It is hard to tell whether or not the price will continue to increase, if it will stabilize around 600, or if the fear of the auction will continue to push the price down. If the winner of the auction to US Marshal buys the bitcoins for a discounted price, it might get the Bitcoin price to tumble even more due to the risk that the seller might cash in immediately.
US Marshal will auction off 29,656.51306529 bitcoins and they are accepting offers based on these terms:
A manually signed pdf copy of the Bidder Registration Form
A copy of a Government-issued photo ID for the Bidder (or Control Person(s) of Bidder)
$200,000 USD deposit sent by wire transfer originating from a bank located within the United States (please provide receipt of transfer)
So if you have the funds for buying 29,656.51306529 at a discounted price (most likely), then go for it. It might be worth the hassle.
What is interesting about the move from US Marshal is that by doing a legal auction of bitcoins, they do legalize the use and trading of Bitcoin. Not in a formal way, but why would the US Marshal sell bitcoins if other authorities in the US would prohibit the use of Bitcoin? US Marshal do not auction of drugs or guns, but they auction of bitcoins. This could be a pointer of where the authorities in the US are heading when it comes to Bitcoin legalization (regulation).
Or, the different departments could all be non-communicating, meaning that the US Marshal move has not been influenced by any other party. If this is the case, there is no way to tell what other institutions might do regarding Bitcoin. It can go both ways.
Bitcoin Price Rebounds
If you look at the graph below, the price hit 550 USD twice at around 00:00 today EST time. It has then rebounded to about 600 use per Bitcoin. It is hard to tell whether or not the price will continue to increase, if it will stabilize around 600, or if the fear of the auction will continue to push the price down. If the winner of the auction to US Marshal buys the bitcoins for a discounted price, it might get the Bitcoin price to tumble even more due to the risk that the seller might cash in immediately.
I this the actions of the US marshals will do wonders for Bitcoin. It will drag the coin into the Main Street even more, helping to push the coin we mine, and hold up in value.
Long term I think this will push BTC back up over $1500 by February of next year.
Jerry
