Price dumped on silkroad auction news?

[binks1]

Hi,

Correct me if there's a post on it.

I woke up this morning in Sydney and I see price dumped. Could not figure it out why? But then:

"The U.S. government plans to start selling one of the largest caches of bitcoins, which it seized from the Silk Road marketplace used for buying and selling drugs. The virtual currency’s price fell."

http://www.bloomberg.com/news/2014-06-12/bitcoins-seized-from-silk-road-to-be-auctioned.html

Why would be so?  

[Tron]

The price is recovering nicely.

Depending on the motivations of the auction winners, the buyers may hodl, or they may put their newly acquired coins onto the open market.

The total represents about eight days worth of mined coins, so it shouldn't change things too much.

[binks1]

The total represents about eight days worth of mined coins, so it shouldn't change things too much.

Could you please elaborate more on that, or send me a related link where I could learn about this conclusion?

Thanks! 

[burnettm]

The total represents about eight days worth of mined coins, so it shouldn't change things too much.

Could you please elaborate more on that, or send me a related link where I could learn about this conclusion?

Thanks! 

It takes 10 minutes on average to generate a block and each block rewards 25 BTC, so that works out to approximately 28.8k BTC generated every 8 days.

https://en.bitcoin.it/wiki/Blocks

[ajareselde]

Its all about supply and demand.
u normaly have a btc block every 10 minutes, so thats 60 blocks/hour, 3600 bitcoin a day.
over the time price adopts to market inflow, and right now u have that SR bitcoin that are about to be dumped, and that makes traders scared.
noone wants to be the buyer on top of the price, and that dump is gonna put the price quite a bit down.
dont worry, market will recover, it allways does

[kerafym]

The big drop coincide with the news today. So yes.

[BITCOINDENMARK]

But are they being sold wallet to wallet ?, if so it should not affect the exchange price, or how does this work ?