Bitcoin Forum

Totalling around 2719 BTC in one block, the Bitcoin comes from various sources connected to both criminal and civil cases. The auction will be online on August 22, 2016 from 8AM EDT to 2PM EDT according to the USMS in a statement.


Source : https://cointelegraph.com/news/16mln-bitcoin-auctioned-off-in-us-will-bitcoin-price-increase


Shouldn't we except a price decrease instead , I guess It's what happened in the last Silk road auction ?

Seriously, what damage can you cause with just over 2700 BTC? Before the Bitfinex hack you could probably dump the price down like $20-$30 if you sell all at once. There is really nothing interesting about this auction.

I saw this auction and the rules are very strictly which means that the coins will be sold only to one buyer so these will be send to only one bitcoin addresses and the minimum deposit is 100k USD, I think the price will decreased a bit if the winner decide to sell a part of them.

Do auctions even justify a thread any more, even more so for piffling amounts like this? Nothing much happened when tens of thousands were sold. Less than nothing will happen with this.

More changes hands on the OTC markets every day and no one stays up all night screaming and clawing at their faces about that.

Dark markets aren't going away which means these auctions won't either. There'll come a time when buyers are drooling at the idea of them. In future years buying over 1000 coins from legit sources is going to be a very attractive event.

I don't recall anything changing much with previous auctions... So I don't think anything will change now especially because these auctions aren't novelty anymore.

The buyer will hardly sell below $ 586 in the short term, so that will only be a bench mark for them to watch.

I have no doubt perhaps 10% will be palmed off quickly (at cost) to minimise the cost outlayed.  Having said that, if a consortium pooled their funds, it could be broken up post sale and the BitCoins could go out into the world for all to use.

This is not the first time and will most likely be a closed dooor auction. The price of the coins will never be known. Therefore, there will not be any changes in price just like before.

The price will not increase after this....if the bitcoins come to market, then the price may get decreased further. However, if the owners of the auctioned bitcoin choose to spend it for other reasons or hold it as an investment. Then the price may increase.

But why USA agencies are confiscating bitcoins from the users?? this is bad and the awareness about bitcoin may come to a standstill. 

all these auctions have always created some sort of panic among bitcoin users who fear for the bitcoin price but i have never seen a big decline only because of the auction because the auction winner (buyer) is not going to buy that much bitcoin just to dump it the next day and take his money back. because what is the point of that!!

I dont see any price change from this auction, because you should expect the winning bid to be very close to market price. In fact you should expect the winner bit overpays (offers bit over market price) as its hard to get securely so many Bitcoins at once without moving the price, and this auction offers this. And because the winning bid price is not even announced, there is no way for market to react unless the winner dump his coins, but this assumes there is no interest for this auction and someone with small bid wins (way under market price), which I dont expect.

A price decrease is more what I except. Usually they make the price go high to sell the coins that are not at all their at an higher price and it crashs soon.

The price of bitcoin will go down because there are more supply of bitcoin. But we will not expect it to last for a long time. After that I think we will see bitcoin to $600 plus again.

i do not think there will be a big price movement at all. consider this: the market cap is around 9 billion dollars and we talk about 1.6 million. so the market cap is about 5000 times as big.
if you had 100 bucks. would you really be concerned about 2 cents? 

Probably just like with previous fed auction sell offs nothing substantial will happen to the price.

The price could drop a little but not enough to cause any real damage.

It just depends on the price these coins are being auctioned for. If these coins get auctioned at the current market rate, then the person in question will most likely keep holding them. If that person gets a significant discount (which is highly unlikely), then that person can choose to dump his coins. But then again, the market can swallow these coins without much problems. Yes, it may let the price drop a bit, but nothing significant. It's not that we are talking about 20,000BTC. That would be a completely different situation where the impact would definitely be much worse.

I think that the amount of $1.6M is a little too small to change anything in the price of bitcoin.
Besides, they are sold, not stolen. So there is no trust issue that could afflict the mood of the traders or the public oppinion.
The bitcoins will be sold and somebody is most likely to make a good deal in getting them.
No further consequences.

Yeah i seen this too and there is some strange and strict rules imposed on the bidders.

Why would they only want to send the coins to one address and only within one block, is this a normal type of request for auctioned coins or is there another reason behind it?
Can it be a multi sig address?

Nothing is going to happen with price it will remain on the current level, the amount of bitcoin is not so to bring some effect on the price, 2719 coins is not so high and that is why nobody thinking there will be any change will come into price after this auction.

The $1.6 million worth of bitcoin is too small to affect the bitcoin price. Even the Poloniex has more trading volume.

exactly this.

also let's not forget that the person who buys those coins is already a whale who knows what he is doing and will buy these coins as an investment not something to buy and then dump on the market the next morning.

whales are only accumulating at times like this that price is already low and then pump price to the moon and when everybody is jolly and buying bitcoin they will sell slowly.

I don`t think that this auction is going to have any impact over bitcoin price.

It`s just too small amount of bitcoins.

Can`t they just sell the bitcoins at market price.There`s no need of auction. ;D

 

It's indeed much easier for them to just sell the coins at a certain exchange, but no, that's not how it works.

Everything that gets confiscated must be put up for auction to the highest bidder. That's the only way to go for them.

i think by "they" he means the person who wins the auction and takes the coins home. and i agree with him, there is no way they can sell these coins on an exchange this easily. especially in an auction the price may even go higher than the current price of bitcoin because of bids.

Read the bolded part again, he is talking about that there is no need to put up the $1.6 million worth of coins for auction when you can simply sell them via an exchange. And not about the winners of this auction.

This amount is too little to make an impact on the bitcoin price so the buyer will choose to hold that coins then he try to dump a price because he know that amount will not affect anything.

As I remember there was an bitcoin auction before this but didn't check how it went. Anyway about this auction there are 8 days left until the winner is chosen by them so I'm really excited to see if the bitcoin price is going up or down, the last one is more likely.

Well it really depends on what the auction winner does with the coins. More thank likely they'll hold them for a bit, at least I would assume. As it stands now, looks to me like bitcoin is creeping back up to where it was prior to the Bitfinex hack (albeit slowly). So to answer your question, yes but it won't have anything to do with the auction.


I do find it mighty nice of the gov to sell those coins off instead of letting them rot or holding on to them for a bit and auctioning them off when their inevitably going to be worth more  ::)

of course that is not enough the bitcoin price can be moved only if the dump or pump is really big and such amount is not huge at all

I guess it depends on what the buyer does with them?
If they buy them and dump them quickly to make a profit it might move the price downwards slightly.
If they just sit on them, probably nothing will happen to the price.

With just over a week left until this auction takes place...
is anyone from here going to bid on them?

I love govt car auctions. They take some seriously bad assed cars away from people. There are different agencies that do auctions like the GSA, Treasury and Marshall/police. By law, none of them are allowed to sell the items directly. I think those laws are meant to keep corrupt govt officials from taking things away from people just to sell. It makes sense if you think about it. You're not going to go confiscate an expensive car if you may just have to sell it for $100. 

http://media-cache-ak0.pinimg.com/736x/97/65/c3/9765c391e5a05a39059268071ed1ebee.jpg

Not very likely. That aside, don't think many people would openly admit they are winner of a coin auction unless they either don't care, or are a company. From what I know Tim Draper openly shared information about him having won a few blocks of coins in the previous auctions.

We could technically expect to see a price decrease because of the seller potentially selling the Bitcoin off, but ti depends whether or not they sell it immediately due to buying the Bitcoin at market value or if they buy it at a higher value and sell it later. It depends on how aggressive the participants want to be, and a good part of this is related to speculation.

I think that we can see a slight rise of btc price, because still, this is a lot of bitcoins.
However i would not expect any big moves thanks to it, this is not THAT big amount.

I hope the price of bitcoin is going to increase and I think that is going to help the ecosystem of bitcoins price.

Okay but compared with the amount is lost on the bitfinex it's just 2.2658333333 % from total amount of the bitfinex and the bitfinex cases just giving a short impact for the price. it's means nothings.

This is barely anything compared to the amount stolen from bitfinex. I assure you that if the price goes down sharply, it's not this causing it but the hackers trying to pawn off their coins.

this is cointelegraph and like many other crappy news sites they will publish anything with a hot subject to do a little bit of click bait.
in fact they went the other way, they usually say price drop in cases like this.
and i think we shouldn't really expect that much change because of this auction, there were bigger auctions in the past and they didn't change that much about the price.

I cant see a bigmovement coming from such a small amount. People dump 2k coins into the market all the time with small movement. You just need to remember the overall trend is up so that is where this is going.

I hadn't realised people would trade such amounts on a day to day basis, they must be early miners playing the markets to keep the price stable perhaps?  They wouldn't trade all of those in one session though, would they?