US marshals seizure of 4000 btc being auctioned, will start dump/run this month? - page 2.

Sadlife

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Quote from: rdbase on February 04, 2020, 05:38:45 PM

The last time this happened was back in september/october 2016 then within the year bitcoin had its all time high at $19k.

That's interesting, i thought the price would dump hard, and it is also questionable where did the US government get these vast of amount of bitcoins ? cause bitcoin has an pseudo anonymous feature we wouldn't actually know if they've bought or gotten from exchanges violating laws of the state.

If they hold these many bitcoins, how much left they have stored, are they the ones that have caused the major correction in 2018-2019 ?

MinerHQ

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Quote from: blckhawk on February 04, 2020, 06:53:21 PM

The price getting dumped is a result of global exchanges' average price for Bitcoin, which is reflected from the Buy/Sell orders on these exchanges. Once the pressure on buyers is high (few sellers @ stagnant higher prices), the price starts to increase.

Unless these 4040 BTC is sold in exchanges in batches, and with prices stagnant and drives the price lower, it could actually dump the price. But this type of news selling those coins in auction, might get huge attention and drive the buying force (buy orders) higher.

Yes, it is like free advertising for the bitcoins. This may pull some new buyers. Even if prices go down, it may be for a short period and it will come back. If one is already in crypto markets for long time then they know that all these things will not impact much on the bitcoin prices in the long run.

If they are selling at much-discounted prices then for the short term we may see prices correcting for a while. If not, I don't think it will impact much on the current bitcoin price.

passwordnow

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I think it was a normal reaction of the market that was seen recently. This might be the caused of it because whenever we have news like this, the market reacts quickly as if it's really moving down because of the sell offs. Some whales might be cashing out to USD so that they can join the auction and buy those coins with a possible discount.

blckhawk

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The price getting dumped is a result of global exchanges' average price for Bitcoin, which is reflected from the Buy/Sell orders on these exchanges. Once the pressure on buyers is high (few sellers @ stagnant higher prices), the price starts to increase.

Unless these 4040 BTC is sold in exchanges in batches, and with prices stagnant and drives the price lower, it could actually dump the price. But this type of news selling those coins in auction, might get huge attention and drive the buying force (buy orders) higher.

pixie85

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No. This was discussed multiple times times!

There will be no dump.

Quote from: Zicadis on February 04, 2020, 06:11:22 PM

In recent times, these police auctions haven't seen the BTC being sold at much lower than spot rate.

Coins are auctioned off at a premium. In the past those who were buying were paying more than they would by bying on a regular market. It would be stupid for them to lose money trying to sell. Obviously they want to avoid exchanges and that's why they're choosing to buy in bulk and pay more. They aren't going to run to Binance, do KYC there and start dumping at a loss.

Read about fresh minted Bitcoins catching premium prices. People are ready to pay more for unused Bitcoins so they're also ready to pay more to avoid shady exchanges, especially the Chinese ones.

btc_angela

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I surmise that those who are going to purchase this bitcoin specially at a discount price are big investors, meaning they have crypto investment backgrounds. And I will think that they are going to buy this bitcoin because they know that bitcoin halving is coming, and they are waiting for the price to be pump. With that reasoning, I don't think that they will simply dump it, on the contrary they might going to hold and wait for the block halving and see how their investments goes.

Zicadis

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Dump it!!!

In recent times, these police auctions haven't seen the BTC being sold at much lower than spot rate.

Even so, even if they manage to buy the BTC at 20% discount, that's paying around $29 million for around $37 million worth of Bitcoin.

The daily turnover of the Bitcoin market is around $30 billion right now. So even if they dumped all $37 million at once (which nobody in their right mind would do), it would only transiently affect the price of Bitcoin.

Realistically, I think they'll get it at more like a 2-5% discount, since it's pretty much-guarnateed profit

romero121

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In what way the market is going to move isn't known precisely. Already similar incident has taken place and the same gives a thinking that the price of bitcoin will get dump due to the auction of such a big number of bitcoin. Even if there happens a dump it'll recover for the big move. Each and every news relative to bitcoin is a speculation. So lets believe the market not to react big on such occasions.

squatter

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STOP SNITCHIN'

Quote from: rdbase on February 04, 2020, 05:38:45 PM

Do you see those who are purchasing them to cause a dump in the price due to selling them off or a bull run just like back in 2017?

Is there any indication that past USMS auctions sold bitcoins at a discounted price? Unless bidders are buying at significant discounts, there's no reason to think they'll turn around and immediately sell them.

If anything, these bitcoins might fetch a premium for the same reason that "virgin bitcoins" do. They are officially whitelisted by the US government.

rdbase

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The last time this happened was back in september/october 2016 then within the year bitcoin had its all time high at $19k.
https://www.coindesk.com/us-marshals-1-6-million-bitcoin-auction

This month happening on February 18th they are planning to auction even more due to seizures in their sting operations causing confiscations totaling 4040BTC
https://www.newsbtc.com/2019/03/08/bitcoin-whales-cryptocurrency-auction
https://cointelegraph.com/news/us-marshals-to-auction-37m-in-confiscated-bitcoin-in-february

Do you see those who are purchasing them to cause a dump in the price due to selling them off or a bull run just like back in 2017?

Topic: US marshals seizure of 4000 btc being auctioned, will start dump/run this month? - page 2. (Read 395 times)