Topic: Feds transferred BTC from seized Silk road wallet to Coinbase - page 2. (Read 407 times)

Well, as the attitude of Bitcoin with these news. The drop is there yes, but it always recover fast and we're approaching halving so the dump is possible but I won't be surprised if the recovery is quick.

It's always the news that sends the market down but then, the whales are ready to catch those sold Bitcoins. But if they sell that, there is a possibility that some of these whales might ask them to reserve it for them, who knows.

You're right, compared to the daily volume it's not that a lot. But news like this could affect the market temporarily maybe just a few hours and moves mostly the retailers but then it will be back again healthier.

I agree, it could just affect the market like a flash crash but then everyone is just waiting for some opportunity to buy and majority probably have their buy orders.

Possible, Coinbase is registered in the US and they can't just go away with the Bitcoins that has been deposited on them by the FED. But what can we think of when they've done this action? most of us have the same thought that they wouldn't do that for nothing and just want Coinbase to keep it. I haven't read about those two fed agents that have ranaway with their funds before.

It's legal since they're the government and actions done by them has been coordinate with their higher ups or any agencies that are connected to them.

You're right, they didn't sold it at once so I guess they're also having that problem that every holder is problematic with and that's about selling in batches because we have no choice as the exchanges will question us. But this is not a problem to them, there is a tendency that they're doing it in batches so not to get as much attention that it will be but if that's the reason, they're not good in hiding as they've been already found out doing this massive tx.

They can't stop it whether they feel threatened about Bitcoin. The biggest financial institutions are already in, I'm thinking if they've offered this to them or how and why they've resorted into selling and depositing it on Coinbase. Maybe, there's a legal basis on this process.

Possibly that this is what the speculations are telling that I've read all about, before the halving there will be some corrections that shall come. It might not be a massive dump but a healthy correction and this can be one of the factor and contributor of it.

We can think of the other things that are on their possession like the expensive paintings, etc. Those that have been confiscated due to illegal activities, money laundering and many others. This is just a part of it, I can't imagine how vast the amount of money they're holding. But true, it's classic and legal if it's them.

I agree, there's still an impact but based on how the market works nowadays. It's likely that less than 24 hours the impact is there but not surprising that it will get back rapidly.

Maybe if this were 2017 it would make an impact, but these days 2bil is just another second on the orderbook. 

Funny how the Feds can do whatever they want.
Sure it's confiscated btc but who says the government is the owner of these coins now?

I don't want to know how many of these people actually filled their pockets this way, just classic.

If they are actually holding almost 100k btc that would mean they own/hold like 0.5% of all bitcoin circulating at the moment. Sure it doesn't sound much but it kind of is.

I also think that way. 2 billion dollars compared to Bitcoin trading every day is only a few percent, it is not significant enough to make the price of Bitcoin drop. Moreover, Coinbase is not stupid enough to accept all the Bitcoins at once, they seem to only want to accept it gradually and have taken into account the various possibilities of this trade.

Another easy way for government to make money after taxing someone else incomes, print new money and earn interest from lending.

Massive dump won't happen because the bullish trends and upcoming halving events able to cover it, there are still bad news during bullish trends, but it doesn't affect people to believe Bitcoin will pump.


Coinmarketcap, Coingecko etc.

That sounds more like declaration of War on Bitcoin 😲
At the very least this is a significant market manipulation attempt and as far as I can tell this would be the first time the US regime is selling seized coins on a centralized exchange instead of auctioning them off-the-market.

The only question remaining is: are they starting to feel threatened by Bitcoin?

Yeah, it wasn't specified in this report how the seized coins were sold. It was possible those were sold via the spot market. It was also possible the coins were sold via OTC. But I heard of auctions of seized coins in the past.

What's interesting, however, is that when the $216 million worth of seized coins were sold last year, it didn't cause a massive dump. Instead, on the day of the selling itself, the price of Bitcoin even went up. And it even continued to rise right after. So, this planned liquidation of around $131 million worth of coins, a much smaller amount, won't probably be a big deal as well.

No information that how the US. Government sold bitcoins from Silk Road in the past.

Information is only about Coinbase.

U.S. Government Sold $216M of Seized Silk Road Bitcoin This Month

The Government's sentencing memorandum regarding defendant James Zhong

I don't expect a massive dump. I even think massive dump is an exaggeration. It will have an effect if sold at once, of course, but Coinbase handled $1.2 billion in BTC/USD alone for the past 24 hours. So, $131 million is not even a tenth of Coinbase's BTC/USD pair.

Also, Coinbase has Coinbase Prime, their OTC exchange where institutions are making deals probably in hundreds of millions, if not billions. This amount coming from the US government might end up there. In which case, it won't be shaking the market much.

Price will not pump to the Moon when they sell but we only can not know how many bitcoins they will sell and how deep Bitcoin will dive.

If we have money, wait for their sales and buy dips. It's simple.

If we don't have money, don't sell our bitcoins because the Moon is still months in future. Halving will help Bitcoin to touch its Moon in 2024 and 2025.

We indeed bullish even if this happened, look at the price and volume of Bitcoin, it does not really panic. The pullback recently from $70,000 up to $65,000 is already recovering.

Another thing is I didn't yet heard anything about the feds doing this transaction, is this legal? What could be their plan?

When they have historically sold coins, they sold blocks of coins to bidders so it was all handled off-exchange and didn't affect pricing. I hope they are just using Coinbase for some custodial reasons, rather than having the intentions of actually dumping all of the coins into the open market as this could impact pricing. My suspicions on why they have deposited the coins into an exchange, is because they don't want a repeat of last time where two US federal agents tried to steal the BTC for themselves, so the exchange would have more controls established and completely disallow withdrawals etc. Coinbase is also a US company so there is probably some sort of safety provided to the US government for the storage. I imagine Coinbase representatives may be advising the US government on what to do also.

Whales are going to eat this up. I wouldn't worry. Although this could provide a good buying opportunity, for those who act fast enough.

Impressive observance, where did you get this source. Let's see how much  this affect the bitcoin price. And on the other hand it's payday to the government, having that kind of huge free money, surely will throw a party pater this week.

There's a lot of paperwork to do this though and I'm pretty sure that most of those bitcoins from the seizure would be subjected to police auction, isn't that what they've done before with other bitcoins that they've seized from Silkroad? It's going to be cheaper when they do it in the auction though, last time that they've done it, the winner of the bid paid like half of it's worth in the market so I expect that's what's going to happen next time. The effects on prices will probably only be visible once the winner of that bid sells those bitcoins and introduces it to the circulation.

94,000 x 67,000 = 6.298 bilion

if we have 15,000,000 coins not lost it is

15,000,000 x 67,000 = 1005 billion or just over a trillion

6.298/1005 = 0.62667 %


So it should not move the price much at all.

Whatever. It's not a lot of money in the last 24 hours the trading volume of BTC was about $34 billion.
Even if they moved the 2 billion to sell all at once it's less then 10% of the average daily volume.
But it does make for an impressive headline.

-Dave

If they have 94000 coins and sell them it will be interesting to see how price goes.

This is great news and hopefully the price of bitcoin drops below $50k, then it will be a good time to buy bitcoin.

Sometimes the decline in the price of bitcoin is something to wait for, like waiting for the price to rise. Because the most boring thing is when the price is stuck and doesn't move 

I was looking if someone has posted this news already but I'd share it here. The title speaks for itself but I'll just highlight the bullets from the article.


Looks like they're preparing for a massive dump and not just that, based on that article the feds are holding more Bitcoin as well from the recovered wallets from hackers and they're about 94,600 Bitcoins.