Topic: The US government sold 9800 bitcoin on March 14 (Read 281 times)

You have to realise that the government will not sell that many bitcoins on a usual exchange. Usually such sales take place on an auction and through OTC. That is, the market will not react to such a sale with a red candle. Of course, if this were done on Binance, for example, the bitcoin price would fall back to the 20k level. In fact, there are often big sales and purchases on OTC that we just don't know about.

If the American government agency in control of those coins really wanted to get the best price for their sale without dumping on the market, they should put it on auction or for secret bidding.

However, the skeptical me thinks there is someone in charge of the wallet who is smiling because he cannot wait to dump with the whole amount hehehehe.

I mean when you consider that they stole it from someone else, or not really "stole" it but basically got it from a criminal, that's not really a lot of money at all. Plus, the market eats that up everyday easily, it is not an amount that we haven't seen, it happens in the market all the time and a normal reaction as well.

I personally believe that we shouldn't really be focusing on anything like this at all, we should consider that as a normal situation we are facing and as long as these type of sales continue, which it will, we should be ready for them at least. Market was ready, maybe it is not looking amazing but we also didn't crash when this happened neither.

9800 BTC = 275,000,000 USD (Preev.com as of this writing) which we could say that it is something an amount that could be having some significant red candle on the charts but it would really be just that too useless

because buyers would really be just simply swallow it up, even if they would really be deciding on selling the whole stash then it wont really be that much of an issue about crashing the market.
Seems like US is really that on big crisis which they are really that releasing those coins that they had been holding for so long which do came from confiscation.
Well, lets just see on how it would goes as on the time that it would be happening.

It is important to note that the US government is selling this not because they are bearish on the prospects for Bitcoin, but because the federal reserve is massively in debt. As long as the government doesn't regulate it and destroy Bitcoin and I don't believe BTC can be stopped. Because Bitcoin will always be a valuable asset. The sale of BTC by the US government is not big, it may not even be able to create BTC liquidity so that the price can be cheap, so far the price of BTC has not fallen which is something to watch out for.

9800 Bitcoins? That’s really very large amount. I guess for that reason the second half of March wasn’t so pleasant as the first half. Bitcoins stuck at 28k usd for few days now. This might be one of the reason for which Bitcoins stopped gaining in price. The coins normally rises when the demand for the coin among the people increases, but we shouldn’t forget that the price also gets hampered when the demand decreases and many people selling more Bitcoins then buying one. But here the government sold 9800 Bitcoins completely at once, therefore shaking the whole market. Still let’s see where the price will go this month.

Even if they sell all bitcoins in 1 go and want to crash the market, we have nothing to fear, and with that amount of bitcoins, they can't make the market crash. The US or any government, they don't have the power to crash bitcoin because there will always be people waiting to buy bitcoin at the cheapest price. I even pray that they sell that bitcoin ASAP, I'm furious that bitcoin is in the hands of the government, who want to suppress the market and control bitcoin.

Yeah true, there are only a few places and people that can sell and impact the price, but the rest is not going to be that easy to sell and make an impact on it. If satoshi wakes up and one of the wallets we know belonging to him ends up selling it all, that would make it a sharp decline for sure, or microstragey, or maybe Elon musk I am not sure.

There are very few, and us government selling this 10k coins is not an issue, maybe the new ones microstrategy bought are these? I don't know if who bought it is a public info but if it is I am pretty sure there is a connection since they recently bought some and this happened at the same time.

if for example one day everything is sold out, will they make such a Dump in the crypto market? I do not think so. if I read from the news, actually America is also holding an auction of Bitcoins that they confiscated, so they don't sell everything directly and also in one sale, no.

So here also through the documents uploaded by the OP that actually on March 14th 2023 they (USA) have sold around $9,861 Bitcoin. So there's still some left, huh. The remaining $41,490 Bitcoin is planned from the Ross Ulbrict case in America, to divide it into 4 batches. The first ones went on sale on March 14, the next batch is still unknown, it is still kept secret by America itself.

But don't panic right away. When we saw this news, you were like Ouch, what if, for example, the $215k of Bitcoin confiscated by America continued to be sold, what about everything. from its history, America has never sold everything instantly, but sold it gradually and auctioned off like that, so as to sell someone who wants to buy it, so that it is immediately accommodated by someone else. There is potential for a price drop, but if we learn from history, it won't be a total dump right away, but again, there is potential if, for example, he wanted to crash the crypto market, he (the US) could sell everything immediately. But historically, it's not like that, he sold it in stages.

Many people think that when someone sells bitcoin it will make a sharp correction, as we know that currently the bitcoin marketcap is more than $ 550 billion, of course when the government sells 9800 bitcoins it will not have too much effect, even before this is a sale with a large quantity more have happened and are not affected.

The US government has already sold 9,800 BTC out of a total of 51,000 BTC recovered. The remainder will be sold in four phases throughout the year.

This is positive news that reduces the rumors that caused fear among traders that selling them at once will strongly affect the price.

The sale took place for the first time at a price between 26,000-24,000, and now we see that Bitcoin has risen to 28K, which means that selling these quantities did not affect the market.

As for why the government did not decide to auction it off as it did before? I don't know why, frankly, but it's a good decision for the market.

The us government is in so much debt that selling these bitcoins won’t help them at all. They are trillions in debt and paying huge amounts of interest every day on that debt. This is a drop in the bucket. They aren’t doing this to save their economy even if they knew Bitcoin would rise in the near future.

They need to reduce spending in another ways. They need to reduce their military spending and not spend so much fighting climate change. They are digging themselves into a huge hole and no way they will get out. They will just print money to pay all these debts and make inflation worse.

US Gov sells treasuries hodls BTC would probably undermine national security, sadly not a likely move they can do even if they wanted.   They should be reducing their debt, buying it back for the valuable thing its supposed to be as a kind of investment.   A good company will buy back its debt but we have the scenario where debt is too cheap and its better to sell debt and buy back equity to avoid paying any dividends.   The world is topsy turvy, thankfully BTC is not politics inversely its worth far more.

If you really want to find any corruption, they cashed out 215 million in btc, and spent fee of 215k as well. That's too much, in any case that is too much, it could have been a lot cheaper and they decided not to, probably something happened there but not really worthy enough for anyone big, doesn't worthy to risk your career for such small return, but definitely someone did something there.

In any case, dude was a bad guy and his coins definitely deserves top be cashed out and sold. It is not just about the fact that he was a "liberal idea" guy, he literally hired killers for money, that's good enough to put someone in jail if you ask me, no reason keep him rich.

I don't think news such as these has any major effects on the market anymore. We can also see that the market didn't really have any meaningful reaction to this news. Such big sales by US government are not uncommon, apart from SilkRoad they keep cracking down on businesses confiscating their coins and selling them regularly.

Even if it's from the Mt.Gox victims I still don't think that all of them will dump their Bitcoins all at once. They already invested before in BTC because they knew its potential but how much more when their instincts are true that BTC do really have a big potential to pump big? They may only need to hold it on their own which I know they will because they already learned their lesson that keeping BTC on a centralized platform is not safe.

USG are not different from us and other institutions who invest. They also invest to earn so they know what time is best to sell their coins but it won't cause a big dump since it's stated that they will do it in 4 batches.

Since these aren’t MtGox victims I am not expecting them to dump it all at once. They were smart and basically sold it during a bull run that week.

If this was MtGox users getting their claims I would be more nervous because those would be dumped at once but since this is the USG I don’t think they really care what price they sell it for. Whether they sold at $30K or $20K do you think it matters to them? No.

That's more likely then.

And with that money, they know that they can move the market a bit and if that's the plan to just play with the market, we'll see with the other rounds that they're going to do it.

But I'm guessing that they'll have no to little impact from the market.

The price of Bitcoin was around $24k on the 14th of this month, so they could easily get $4k extra per Bitcoin if they had sold them now, but we all know that they are not into that kind of calculations, and besides, they have already made enough profit on them considering the date from when they confiscated the Bitcoins until when they sold them.

And they still got 3 batches left, and I'm pretty sure that they will sell them at the right time. Even if they aren't holding them for profit, they will definitely sell them at a better price as they know it will be more money if they do so.

They could even sell all of those stashes that they do have, the community would stood strong no matter what.It is really just proving out that they are on a crisis eh?

Doesnt matter if they would really be selling it out all, its true that it didnt really put up much effect when it comes to price movement.There might be some drops but it would really be eaten up
with buys which it wouldnt really be that much an issue if they would really be selling it all.

Emotions and anxiety about such action cant really be that be blamed out specially on the community where emotion do really play a big part.

Well that seemed to have very small effect but didn't hurt the small bullrun to current value at all. Imho they timed it just perfectly. I hope that it will play out as well during next 3 patches.
I wonder if they are looking at the charts to decide when to sell or do they bother to do that. I am not even sure it would be lawful for them to do that as any kind of tactical manoeuvres could be counted as market manipulation from their part.



I guess that would have twice the effect if bitcoin would be twice as valuable.

Yeah, just surprising that they are selling it as compare to their early strategy of just auctioning it and let the buyers decide for the price. Maybe they learn from it before wherein they sold at auction and it was for a cheap price.

So they just think of offloading it by themselves, through whatever means, OTC or any other, not just in auctions. And the timing too is great as they did it when the price is going up, so win win for them and maybe moving forward the US government will sell the rest just like this method next year when we are in a big bull run.

For those who do not know the details of the case, you can view it here: https://www.coindesk.com/policy/2022/04/22/seized-silk-road-bitcoin-to-clear-ross-ulbrichts-183-million-debt/
This is the file of the judicial ruling in the year 2020: https://storage.courtlistener.com/recap/gov.uscourts.cand.368440/gov.uscourts.cand.368440.1.0.pdf


I think that the reason for dividing it into 4 batches is related to legal reasons, or at least until the procedure is completed, rather than being difficult to liquidate these coins, and perhaps the rest of the coins will be displayed in public auctions.

It's the US government where they can print dollars, why do they need to HODL 10K bitcoins when the GDP is over a trillion dollars?

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When will the day come when Chipmixer coins will be sold.

is that bitcoin from silk road who got stolen ? well , if u dont know , they still have another 41,5k btc left ready to sell.
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not mean to judge, but they seems have enough funds , instead they seems playing with market i guess, lets say i am crazy and they have idea to take some of supply of btc by forcing sell in the low price.

Are they needing some funds now and that's why it took that long for them to decide to liquidate it and the rest for four another rounds?

I guess that they're on the right time and the last remaining batch could be sold when the bull run has come. But if they intended to sell that in the first place, they should have decided to sell it on 2021.

For sure they can even make a lot of profits besides selling those Bitcoins once this will happen. They can easily manipulate the media and spread some news just to pump the market and for sure, I agree with the insiders here which is really make more profits for them.

Silkroad was down in 2013, so they hodled for 10 years. It's longer than most of the "bitcoiners" hold. Don't you think that taking down 25% of a position after doing 200x is a wise take profit strategy? I am not sure if the timing is correct, as I think we will see another leg up, but... they have much better traders and insiders than I am.

If I am not mistaken many confiscated Bitcoin were also sold via auction. I also wonder why they are now doing away with the usual way of disposing seized coins. They are probably maximizing their Bitcoin's worth? Perhaps the proceeds would be higher this way? They could easily get the right timing as to its price when they do that in this manner. And they're also doing this in batches. They're seemingly trying to make the most of these seized coins.

I don't think it's a very smart move. The logical thing to do would be to HODL those coins, but of course, they are not bitcoiners. At a time when cryptocurrencies are going to start being used as reserves in banks, currently limited to 1% in Europe, bitcoin is the best reserve you can have. But well, one thing is the government and another the banks, and what they want to do is spend that money, so it makes more sense to convert to fiat.

Yeah so far they sold 25% of their stash and will sell 75% sometime in the next year. If you look at the chart you will see that March 14th was a bullish day for bitcoin. So most likely they will be selling into strength instead of just market selling it during low liquidity or bear market. Maybe they got someone at Coinbase that picks the most liquid time to sell those coins without affecting price too much.

Really surprised why they didn't just auction them off like in the past. Someone would of paid OTC no problem. There was Justin Sun who offered but he wanted to underpay by 10% and most likely they wouldn't go for it.

The coins were from the Ross Ulbrict, Silk Road case. It was also mentioned in this memorandum that the American government will be liquidating the rest of the coins they have taken from the case this year and divided into 4 batches.

Why has the government not decided to sell them through an auction or over the counter similar to what they have done before?


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Source https://www.docdroid.net/cAA99Gw/123-pdf