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

[rdbase]

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.

You could easily easily be traced if you're careless and if you don't know what you're doing. Sending the funds on a custodial service that has your personal information can easily easily associate you with the coins. Remember, there's a big difference between pseudonymous and anonymous.

But isnt this be the main reason they would look for a mixing service so have their whereabouts uncertain?
That is their cause of existence and the need in the crypto space isnt it?

Anonymity was the vision of what satoshi had in mind when he created bitcoin.
This is what I have always believed and the traceability on bitcoin was just needed so to keep a ledger of all transactions. Just like bookkeeping in financing of any corporation so when there is an audit they can not cook the books.
This reminders me of tether and what is going on with the ceo of cryptocapital late last year.

[serjent05]

Imagine making the decision to auction of 4000 BTC prior to the upcoming halving.

Perfect timing to hype and increase the price of Bitcoin for Bid.  This authority sure knows what they are doing.  Getting much profit and reducing the possibility of a market crash because of the current positive sentiment of the market due to the upcoming halving event.

[kryptqnick]

there has been hundreds of this type of auctions where the seized coins, that are usually a lot higher than this, are being auctioned and so far i have never seen any of them cause any kind of additional fluctuation in bitcoin market more than it normally has already. and i don't see this small auction be any different than any of the previous ones.

Yes, I've heard about the auctions in 2019, so I suppose they are pretty common. What I did not know is that the amounts for sale have been higher than right now... I am actually surprised I've never encountered anything about it. The auctions I remember were on way smaller amounts of BTC (at least one auction that comes to my mind now). I do agree that these things usually don't have any effect on the market, so this might pass by without changing anything once again.
The op seems to suggest that the auction might have triggered the pump, but again I don't remember it being the case or being actively discussed when the pump occurred.

[YuginKadoya]

That amount is surely huge in my opinion, but I don't really think it will do a huge impact on the price of Bitcoin, It will just cause a lot of attention on the people that really like Auction and Bidding because the amount of Bitcoin is definitely huge, and pretty much right now the price on Dollar of that 4040 BTC is $39,050,640.00 USD right now and it is still increasing so the winning of that Auction would surely earn something from the money he would lose from that Bid.

[iluvbitcoins]

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.

Ugh, but the goverment knows who bought them? Kinda loses the point.

Either way, I'm skeptical that 4k coins being dumped is large enough to trigger a sell-off.

The media stories will generate enough interest to counter the sell off, if it happens.
And as previously said, the bitcoin market is huge enough now so it wouldn't suffer from such a sale.

Someone will probably be buying these Bitcoins to hold on to them. It makes no sense to buy it and then just dump the market.

Depends on the price they purchase them for.

The auctions I remember were on way smaller amounts of BTC

BTC price and trade volume was lower as well.

[Harlot]

It's an auction whoever the buyer will be he will be indicating it's fair value and I don't think anyone in that auction will be lowballing anyone since they know it will be easier for them to liquidate it after they won the price I'm sure that their buying price will be close to the current market value for Bitcoin. If they bought it at near market value it will just be a dumb part on them if they decided to sell it quickly just to earn a few hundred dollars or less so no I don't think that this auction will cause any kind of ripple effect in the market since it will just be like a whale buying thousands of BTC in an exchange which he will just hold them off to earn when the next significant price movement comes.

[fullhdpixel]

I am not going to start making assumptions that the price will fall due to what has happened before. This time it might be a different story. Since I have had a strong faith that the Halving we have next will cause a bull run. Maybe this auction that the US government is about do might cause a decrease but after that the price might still get back up and keep going up.

A decrease in price might even lead to lots of Investors rushing in and thereby leading to a serious bull run. You just never know. The thing with Bitcoin is that things happen when you least expected them to happen.

[imstillthebest]

That amount is surely huge in my opinion, but I don't really think it will do a huge impact on the price of Bitcoin, It will just cause a lot of attention on the people that really like Auction and Bidding because the amount of Bitcoin is definitely huge, and pretty much right now the price on Dollar of that 4040 BTC is $39,050,640.00 USD right now and it is still increasing so the winning of that Auction would surely earn something from the money he would lose from that Bid.

yes the amount is huge  but it will only have an impact once they sell this amount of btc to an exchanger  and will surely cause the price to dump hard  .

 i find this amazing because btc is also being auctioned  , what i thought is that physical stuffs are mainly being auctioned  .  they are smart because they want to earn more other than selling this directly on an exchange   . also  ,  the winner of the bidding can also loose because the value of btc can still dump

[stompix]

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

No, that was not the last time.
A simple search and we have:


March 05, 2018   Lynzey Donahue
Approximately 2,170 bitcoins to be sold
https://www.usmarshals.gov/news/chron/2018/030518.htm

NOVEMBER 4TH
This sealed bid auction is for approximately 660
https://www.usmarshals.gov/assets/2018/marchbitcoinauction/

FOR SALE
Approximately 3,813.0481935 bitcoins
Opens: Thursday, January 11, 2018
https://www.usmarshals.gov/assets/2018/bitcoinauction/

As some others have pointed out bitcoin auctions for seized coins happen quite frequently.
So, with facts invalidating your theory, there is nothing left to speculate, isn't it?