Topic: Is the US government about to sell over $1 billion worth of Bitcoin? (Read 209 times)

China saw the problem 10 years ago, and they were the pioneers of mining and accumulating Bitcoin through miners. The American people have also been aware of the role of cryptocurrencies and Bitcoin over the years through democracy in this Country.
The banking system has shown many mistakes that are hard to fix, so the blockchain society is showing its right and superiority. I call it a communist society.

It was a total of over 144,000 bitcoins seized, and that was in 2013...
1 BTC in 2013 = ~100$
144,000 X 100= 144,000,000$

Why do you think they didn't sold everything in 2014,2015,2016, and so on?

Let's do the maths while 1 BTC was 60,000$
144,000 X 60,000 = 8,640,000,000

Why should they refuse free money? Especially during nowadays, since they give free money with millions to finance the war in Ukraine...
At least for sure, the americans citizens won't refuse to receive a $100 cheque.
I don't know but if I was POTUS, I would say let's take the money, I can build few hospitals, with few schools...
The huge fiscal and monetary support measures since the Covid19 crisis have created severe tensions in their economy, even if its activity has recovered quickly since.

This said, already 100,000 bitcoins have already been auctionned years ago.

Look at the 200 millions USD stocked on Coinbase, it's perhaps not a huge amount you could say. But that's what they give to Ukraine every XX weeks. I don't knox exactly but it appears to be every months they give free money to Ukraine. Is it a kind of airdop? LOL.

If it is an attempt to further dump the price, I would say they're very bad in their job. It would have been much more efficient to send all the bitcoins and sell everything for a total of 1 billion. And nowadays, they use more efficient methods to do it via regulations, stablecoins stuff, annoying binance, etc....

To see how people react: well, look at the price, nothing happens and the price has been down for about 3% (and today in green). And as usual, only the weak hands panic on Twitter, knowing most of them already got rekt few months ago and leaved the market. I mean, since we already got a purge, they're less and less...


If I'm correct, China is now the biggest whales (or one of the biggests). While it makes sens to keep their bitcoins to perhaps use them for the internationnal commerce in case of internationnal sanctions, it doesn't really make a sens for The USA

If they sent $1 billion to Coinbase I don't think they would just sell it in the open market. There's not liquidity for a billion dollar sale through a single exchange. That's over twice bitcoin's normal daily volume on Coinbase. I would assume they are just using Coinbase as a broker to sell it for them on the private wealthy people market, instead of auctioning it off like the US govt has done in the past.

That's a pretty small amount of bitcoin they have ceased over the period of time or are they not showing us the real cease because they wanna use it now and then for their internal affairs? Lolz
I mean the number is small as compared to what comes in the news regarding the raid of bitcoin all the time from this criminal activity, from that CEO, from that Ponzi scheme, and whatnot!


They might have decided to just liquidate it over an exchanger and show the public a dump that is on its way. Though I believe from past experiences, 200 million worth of bitcoin gets sold every other day just like that. So this may not be that big dump and it won't affect the current market situation. Nothing to exaggerate here for sure.



Good time to sell for them. It can benefit the general public like you and me. If somehow let us say it did aggravate the market with the downward movement then we will have an opportunity to buy at discounted rates.

Anchorage does not, or at least I cannot find a public trading desk. There are some things that when the government sells are at, and I know this is not the exact proper term, fair market value at that point in time.
Some things they can auction, other things they have to trade just like the rest of us. It's usually things like gold and such but I guess BTC / crypto in general can fall into that. Some things depending on the case are going to auctioned. Others are just going to a trading desk.

It's just the nature of how and why the government came into holding the asset.

-Dave

The US government can create money but it cannot create Bitcoin. So it is unlikely that they will sell Bitcoin. The US counterweight in owning Bitcoin is China so they should be the ones who collect more Bitcoins, not sell them. All assessments are subjective at the moment and their impact on the cryptocurrency market is only temporary so don't worry too much if you are a holder.

No the right time to sell perhaps but, is the motive for the government and its agencies when it comes to bitcoin really about profit making? That's the question we should ask ourselves and probably look into when it comes to the modus operandi to have been chosen in this round.

Having yo auction it maybe didn't earn them the much they needed or could have gotten out of it. Using that module never meant they didn't have the idea of exchanges and what could have been to have utilised it.
Bitcoin has gone through a bearish phase and even now, it still struggles with the bulls. This could be an attempt to further dump the price and as such, sending the coins to coinbase could be some means to introduce bias in form of FUD and to see how the people react.

as a bitcoin member or investor how will this sales be of favor to us if we want to buy bitcoin now.

There have been rumors and speculation in the media and cryptocurrency community about the US government potentially selling over $1 billion worth of Bitcoin seized from various criminal cases. However, at this time, there has been no official announcement or confirmation of any such sale.

It is not uncommon for governments and law enforcement agencies to seize and hold cryptocurrencies as a result of criminal investigations. In the past, some of these agencies have sold seized cryptocurrencies through public auctions or private sales. However, any such sale would likely require approval from relevant authorities and would be subject to various regulations and legal requirements.

According to coinmarketcap at the current price of btc, its daily trade is $23Billion and the conversation should be, how $1b transacted by the US government helped the market to plunge drastically. The sells pressure is what affects the market price, seeing such a news would lead lots of people to sell their coin believing that $1billion worth of btc sold by the US Government is capable of further reducing the price of bitcoin. By the way the price will bounce back to normal if people eliminate FUD and hodl. Same way is applicable just like the negative and positive feedback loop, if the news was a reverse, that reads; "the US government purchased $1b worth of bitcoin" what do you think would happen to the price of bitcoin? it'll pump again.

Considering this sales a detailed info-graph was prepared by the perkshield alert twitter handle of how the seized btc from silk was spent and disseminated.



It seems they didn't bother to ask for the 50BCH that individual-1 gained, for holding 50btc he unlawfully obtained from the Silk road firm, during the btc hardfork in 2017  

4 Days Ago did you guys notice about the red long candlestick that happen recently if the news was right it might be the reason why bitcoin plummeting again.
Or maybe like the other said that they need Coinbase to secure their bitcoin but this is very high unlikely since it will be safe is stays on the wallet. Right?

and I read some old news that yes they usually 'sell them at auctions, as it already happened previously'

not all coins going to conbase end up on the market

some use it as a unofficial custodial service by just keeping balance on account

and some professional institutions use coinbases "vault" service for official custodial service

My guess is that the part they sent off to what seems to be a Coinbase controlled address is going sold off, though I’d presume they’d do it OTC there.


Earlier today, I was searching around to see if the DOJ, through the US Marshalls (whom are de facto acting as seized virtual asset custodians) were obliged to use auctions to sell off seized assets, or whether they had the liberty to use any other means with liberty.
 
I located the below linked 2023 asset forfeiture policy manual, but there doesn’t seem to be any specific guidelines on the channels to use upon performing a sale. I therefore figure that, having the pertinent authorization, it is feasible to liquidate seized virtual assets through an Exchange.


See asset forfeiture policy manual (requires pdf download):
https://www.justice.gov/criminal-afmls/file/839521/download
(chapter 10 verses on use and disposition of seized and forfeited property).

The weird part is that they sent it to Coinbase specifically, but not just because it's an exchange.

Two years ago the USMS entered a partnership with Anchorage Digital to take care of all the troubles they had with auctions, but Anchorage is a competitor to Coinbase in offering custody solutions so why are the coins going to Coinbase, no idea.

It's weird to have Anchorage win the partnership in this deal only to then use another competitor that was not selected.

What are their plans?

Sell all those bitcoins at once or sell them gradually on the market, maybe if they do it gradually people will feel less fearful about that. However think of it as risk and chance.

Risk is for people who are over leveraging at the moment or in latest past and they still let their leveraged positions open. They are risk takers and I am sure they would feel panic about that news.

Chance is for people who don't use leverage and wait patiently for such fud or black swan events to get very barely seen discounts from the market and weak hands to accumulate more bitcoins with cheaper price.

If they indeed transferred  that huge quantity towards Coinbase, then I assume there are only two logical reasons for the government of the United States to do so:

Either they are planing to sell those coins, so they can add them to the national treasure or they are moving those coins around to different locations to avoid having some much wealth stored in a single wallet. It would be a good security practice for government officials to do the latter, because I am sure there should be some black hat hackers abroad trying to social engineer some agent to stole at least a percentage of that pile of money. The chances of a rogue agent also exist, but slim. 

The government holds as little bitcoin as possible because bitcoin will not become so centralized and manipulated. I also hope they sell that bitcoin and the market gets dumped, that's awesome. I still have a lot of fiat money and don't know what to do with it, I really wish the US government sold all of that bitcoin, so I have a chance to own a few more bitcoins at a price of 10k.

I agree with you that it’s unusual for them to send all of that BTC to Coinbase. I haven’t heard anything about an imminent auction though. It seems like they definitely are looking at cashing it out. Otherwise I don’t see why they would have sent it there at all. Hopefully they aren’t but you never know when it comes to the government. Common sense would say to wait two more years but…

Even when the Bitcoin are auctioned off, the bidders don't participate in the auction mostly for fun, so the Bitcoins still get sold off in most cases for profits. I haven't followed the whole saga. What if it's the highest bidders transferring them for sale 

Otherwise, what would some of the bitcoins be doing in a Coinbase address if not for sale?

I'm still working towards being a part of the 1 BTC club.

Let them sell it