$1.6M ln Bitcoin Auctioned Off in US: Will Bitcoin Price Increase?

[OmegaStarScream]

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 ?

[richardsNY]

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.

[n691309]

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 ?

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.

[gentlemand]

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.

[unamis76]

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.

[Adar Korin]

Since bidders are buying at a $586 per BTC and the highest price in the last few months has been $750, it will be a bargain. If they hold and sell at a higher price, this auction will be profitable for the winner. Also, if they don’t sell, they keep a piece of history.

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.

[tobacco123]

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.

[avikz]

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. 

[Herbert2020]

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!!

[topiOleg]

Shouldn't we except a price decrease instead

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.

[tunctioncloud]

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.

[Vinz24]

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 ?

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.

[Senor.Bla]

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 ?

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? 

[DeathAngel]

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.

[1Referee]

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.

[severaldetails]

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.

[bitkilo]

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 ?

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.

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?

[trafficolaa]

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.

[Xitisang]

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.

[Pursuer]

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.