US gov’s planned $118M Bitcoin sale is ‘peanuts’ compared to GBTC

[ImThour]

US govt’s planned $118M Bitcoin sale is ‘peanuts’ compared to GBTC
Article: https://cointelegraph.com/news/silk-road-118m-bitcoin-auction-shouldnt-cause-concern-gbtc-dump
Author: JESSE COGHLAN

The planned sale of over 2,900 Bitcoin is small compared to the outflows from Grayscale’s ETF, one market commentator noted.

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

[moneystery]

2.9k bitcoins is not a small amount of bitcoins, it is worth quite a lot, but when compared to the global valuation of bitcoins this amount is not that big. because if we look at how some time ago tesla sold their 4k bitcoins, it really caused the market to panic a little, but it didn't last long and finally the market gradually recovered. so there is nothing to worry about from this sale.

and i think the us government will not just sell all the bitcoins, they will also think about the economic impact of the sale. maybe they will sell in stages or sell directly to trusted buyers such as companies or other parties who are ready to accommodate that much bitcoin, so it won't affect the price of bitcoin that much.

[Fiatless]

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

The sale is insignificant compared to the $579 million that has been disposed of Grayscale Bitcoin ETF since the approval of the ETF. The impact of the dump by Grayscale was slightly felt with the price of Bitcoin dropping significantly. But we have seen some signs of recovery with the price moving to $41k. I doubt if the proposed sale by the US government of about 2,934 BTC ($118 million) of Silk Road Bitcoin would have much impact. Even if there is any effect, the price will still recover within a few days. Thus I totally agree with Steven Lubka that this auction is peanut and I think this news shouldn't give rise to FUD.    

[Husires]

In fact, the outflows from Grayscale's ETF are not sell orders, but rather a transfer of ownership from them to BlackRock. It is just like transferring Bitcoin from your old wallet to a new wallet, so selling 2900 will be more effective than Grayscale's ETF outflows because it is not a sell, but 2900 compared to Volume (24h) 531,375 BTC is not a big problem.

[stompix]

The sale is insignificant compared to the $579 million that has been disposed of Grayscale Bitcoin ETF since the approval of the ETF. The impact of the dump by Grayscale was slightly felt with the price of Bitcoin dropping significantly.

The outflow from Grayscale doesn't mean people sold their cash for coins and just went spending fiat never looking back, also this scenario would ignore the inflow from other ETF which would have tuned the balance positive for the first week, the total balance has dropped just in the last few days.

Also, the sum is closer to 2.5 billion if we consider only Grayscale

revealed that Grayscale’s ETF has lost more than 95,600 BTC since January 11, when it went live on national securities exchanges

[SamReomo]

It's $118M worth of Bitcoin and surely it will impact the market to some extent and Bitcoin's price may drops during the sale. It's impact will not be significant as compare to the Gray Scale but it will surely cause some fear in the minds of the investors.

I think US government is taking some smart decisions to sell off their Bitcoin holdings and they may continue selling their Bitcoin holdings in small quantities during this bull run. I hope that the decisions that they take may not impact Bitcoin and its value in a inverse way.

Although, they can sell off the seized coins within days but they don't really want to dump the market as that won't be a good decision by them. If the market gets a huge dump then they will sell their Bitcoin at loss and that's why they won't do that.

[Franctoshi]

Even though that the amount to be sold isn't that much compared to what Grayscale has sold off, I still feel that the market will definitely react to it, except if the sales occur in batches but no one knows which method that the US government is going to use to liquidate this number of Bitcoin (2.9k) worth $118M Bitcoin but should they sell at once, this will in the short term may put pressure on the price of Bitcoin to see new lows from the last price 38.5k we just bounced from maybe push down the price towards $31k, but the sell will immediately be absorbed by the Bulls immediately we tap into that support.

[thecodebear]

In fact, the outflows from Grayscale's ETF are not sell orders, but rather a transfer of ownership from them to BlackRock. It is just like transferring Bitcoin from your old wallet to a new wallet, so selling 2900 will be more effective than Grayscale's ETF outflows because it is not a sell, but 2900 compared to Volume (24h) 531,375 BTC is not a big problem.

That's not true at all. Much of the $2+ billion of bitcoin has been sold by Grayscale was not moved backed into other ETFs. I'm sure some of it was, but most of it wasn't. FTX alone accounted for over a billion dollars of the Grayscale exodus, and none of that was moved back into ETFs, and no doubt of the other billion of so of the Grayscale dump some of it also wasn't simply moved back into other ETFs. So yeah, the amount that the US govt is planning to sell is less than 10% of the net bitcoin selling from Grayscale recently.

[bluebit25]

(...)So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

The description is full of truth but it will still cause a certain effect, although I and many people expected that the event before the halving would cause a manipulation of the price of bitcoin but was not sure about the news would be big enough to shake off those who are playing short-term with the mentality of finding short-term profits. Anyway, this is just a small piece of news but is being hyped as a serious matter. The calculation has shown the whole scale without the need to panic, even though I am not a long/short person in the market but I know it is also an opportunity/risk for those who participate.

[348Judah]

US govt’s planned $118M Bitcoin sale is ‘peanuts’ compared to GBTC
Article: https://cointelegraph.com/news/silk-road-118m-bitcoin-auction-shouldnt-cause-concern-gbtc-dump
Author: JESSE COGHLAN

The planned sale of over 2,900 Bitcoin is small compared to the outflows from Grayscale’s ETF, one market commentator noted.

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

The proposed amount they are planning to sell is not small either, we have known the Grayscale Bitcoin as a giant holder over the years, we may have to advise more on the US government to learn more from them when they are into this, though I don't see this causing a significant difference in the market price, just as there will always be time for everything, this is what they think they are upto now and they have their own reasons for that, but ordinarily, we may like to question on that why now when it is not halving yet before they are selling.

[BlackBoss_]

US govt’s planned $118M Bitcoin sale is ‘peanuts’ compared to GBTC

The planned sale of over 2,900 Bitcoin is small compared to the outflows from Grayscale’s ETF, one market commentator noted.

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

Not only Grayscale but also with appearances of Bitcoin Spot ETFs, Bitcoin market is receiving bigger capital from institutional investors and I believe it will continue to increase so that the market can absorb those 'peanut' bitcoin from US. government well.

Bitcoin Spot ETFs already bought more than 100,000 BTC and this sell wave from US. government will only 2,900 bitcoin.

[Maus0728]

I know he wants to sound quirky but that's the right thing for US to do, bitcoin and the US SEC don't see eye to eye yet even though they're doing this purchase right now. They're testing the waters for the nth time, give the US the time they need to ease in lol.

[thecodebear]

2900 Bitcoin is like one day of buying for the ETFs alone. So its really not much at all.

[DapanasFruit]

Well, of course this $118 million worth of Bitcoin is nothing and I would say will not be making any dint in the overall market's direction plus this sale is to be made via bidding and will not be sold in any exchange...so essentially this would be just a change of ownership unless of course the new owner would deliver his BTC to Coinbase for example then it can have a limited impact. Maybe it is really time for the USA government to slowly get rid of the BTC it accumulated from Silkroad as it does not have any business in this arena.

[DanWalker]

Even though that the amount to be sold isn't that much compared to what Grayscale has sold off, I still feel that the market will definitely react to it, except if the sales occur in batches but no one knows which method that the US government is going to use to liquidate this number of Bitcoin (2.9k) worth $118M Bitcoin but should they sell at once, this will in the short term may put pressure on the price of Bitcoin to see new lows from the last price 38.5k we just bounced from maybe push down the price towards $31k, but the sell will immediately be absorbed by the Bulls immediately we tap into that support.

As Husires said above, the total trading volume of bitcoin in 24 hours is 531,375 BTC and with only 2k9BTC sold, are you very concerned that bitcoin will drop to $38k or even $31k? You are underestimating this market and overestimating the US government.
In the past 10 days since the ETFs were approved, Grayscale and FTX have taken turns selling billions of dollars worth of bitcoin to the market, but that only caused bitcoin to drop to $38k. Meanwhile, the US government holds just over $118 million worth of bitcoin, which is unlikely to cause more selling pressure than Grayscale has done in recent days.

Personally, I think there will be no impact on the market and no one cares about this.

[adaseb]

Most likely these coins will be auctioned off like in the past. They won’t be sold on the open market. The way it works you can tell how much demand there will be based on the bids that are placed.

I remember back in 2014 or 2015 there was tons of bids for those bitcoins and they payed well over market for them, which indicated that we were in a strong bull market.

[Ale88]

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

I feel like this is not even supposed to be a news. That tweet is perfectly right, the market is holding very well despite Grayscale have been dumping a ton of bitcoins during these days, why should we even worry about a few extra thousands of bitcoin being sold? I can't even called it FUD, it's just very irrelevant.

[Husires]

That's not true at all. Much of the $2+ billion of bitcoin has been sold by Grayscale was not moved backed into other ETFs. I'm sure some of it was, but most of it wasn't.

Was it sold? I did not know that FTX had money in Grayscale. Will the bankruptcy procedure allow selling it?

Most likely these coins will be auctioned off like in the past. They won’t be sold on the open market. The way it works you can tell how much demand there will be based on the bids that are placed.

The sale in auctions takes place outside the market and at prices that are determined in the auction, so it will not affect the price of Bitcoin, especially since we all know that there is an opportunity for the price of Bitcoin to rise during the coming year. Whoever will buy this Bitcoin from the auction will definitely not sell it now, but it will be a reason for dumping the price from ATH in 2025.

[kryptqnick]

If Grayscale actually sold as much BTC recently, I think it's a very interesting case for us. Grayscale has been selling over January, and the article says that more than $4 billion worth of coins have been sold since January 11. The price dropped from $48k to less than $39k over the course of almost two weeks, so almost by 20%. But it's already around $42k, so around it's currently down by around 13% from the pre-sale price. That's the kind of power a strong organization and billions of dollars currently have on the price. Somewhat significant, but also very temporary. I do agree that $118 million worth of coins is nothing compared to this.

[DaveF]

It's like saying the US governments sale of 5 UH60L Black Hawk helicopters is going to matter to the world wide sale of helicopters.
FYI:
https://www.gsaauctions.gov/auctions/preview/269494
https://www.gsaauctions.gov/auctions/preview/269498
https://www.gsaauctions.gov/auctions/preview/269495
https://www.gsaauctions.gov/auctions/preview/269496
https://www.gsaauctions.gov/auctions/preview/269497

We only care here because it's BTC
There are plenty of people / institutions out there with more BTC that can sell it tomorrow without telling anyone.

-Dave