Silkroad seized bitcoins to impact price?

[binks1]

Hi,

I tried in trading section but it seems I should have asked here.

It is claimed briefly in this Bloomberg note that this morning price fell because of USGov selling seized bitcoins from Silkroad - but why would price fell 10% because of this announcement - what's logic applies? huh

"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

[Parazyd]

The price didn't fall because of this, and it will not.
It's a private auction and has nothing to do with exchanges and therefore nothing to do with the current Bitcoin/USD price.

[Tron]

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

Because the auction winners are an unknown and therefore the motivations of these unknown buyers cannot be known, some folks are understandably skittish.

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

[Parazyd]

I don't think someone would dump these coins on the market. Why buy them in the first place?

[ZiG]

The price didn't fall because of this, and it will not.
It's a private auction and has nothing to do with exchanges and therefore nothing to do with the current Bitcoin/USD price.

Why do you think so...?

http://www.forexlive.com/blog/2014/06/12/us-government-auction-30000-bitcoins-silk-road-market-13-june-2014/

Buying them cheap(er) is not a bad idea...right...

So, don't be so sure...

ZiG

[binks1]

Buying them cheap(er) is not a bad idea...right...

So, the logic would be: 30k will be bought cheaper on the private auction, then sold on the public exchange for higher price, resulting in lowering the price?

Is there any explanation/guide on internet how selling of 30k would impact the price - I mean some basic calcs?

[Parazyd]

Buying them cheap(er) is not a bad idea...right...

So, the logic would be: 30k will be bought cheaper on the private auction, then sold on the public exchange for higher price, resulting in lowering the price?

Is there any explanation/guide on internet how selling of 30k would impact the price - I mean some basic calcs?

Hardly would impact the price. 27k BTC isn't much. It's 0.1% of all that are in circulation. This much is mined in a week.

[ljudotina]

LAst night 10k of sold BTC dropped price of BTC for 100$. It all depends on market deapth in that time what will happen with price. If someone puts buying wall it can all be sucked up w/o price ever noticing it. If there is no wall, it can bread price down to whatever...but thing is, it would rebound quickly (like it's rebounding right now)

[Parazyd]

LAst night 10k of sold BTC dropped price of BTC for 100$. It all depends on market deapth in that time what will happen with price. If someone puts buying wall it can all be sucked up w/o price ever noticing it. If there is no wall, it can bread price down to whatever...but thing is, it would rebound quickly (like it's rebounding right now)

Yup! Look, we're back in the 600s
Time to start buying again.

[CounterStrike]

The impact should be huge if it were to sell on exchange, but seems like they are selling on auction?

[ljudotina]

The impact should be huge if it were to sell on exchange, but seems like they are selling on auction?

Yes, but noone knows what will new owned do after auction ends and he get's his BTC. He can cold blooded sell it on exchanges all over the world if he pays low enough on auction.

[Gianluca95]

That's only speculation brother.

You have to know that if the government sell a big quantities of Bitcoin, this is not good for all of us.

So, news is very bad, and thanks to it, much of investors sell its bitcoin on the market, and the price drop of 10%, understood?

[dlowings]

I don't think someone would dump these coins on the market. Why buy them in the first place?

Simple… at auction they will go for near market value.. they will be dumped quickly to turn a quick profit .. do you think they are not getting a discount on this purchase ?

The thing I find fishy is how BTC looks to have been manipulated upward prior to the auction ..

Say what you will, but something don't look good for BTC …

As much as I hate to say it .

[Parazyd]

I don't think someone would dump these coins on the market. Why buy them in the first place?

Simple… at auction they will go for near market value.. they will be dumped quickly to turn a quick profit .. do you think they are not getting a discount on this purchase ?

The thing I find fishy is how BTC looks to have been manipulated upward prior to the auction ..

Say what you will, but something don't look good for BTC …

As much as I hate to say it .

Nope, I think the coins will be sold above the market price. After all, it's a piece of history.
Nevertheless, you're right - they could be dumped anytime they would make a profit. Be it a week later or a month later.

[alani123]

Actually this could be the main reason that the price plunged today.  

It's a good thing that they released the coins through a bidding. Selling them in an other way would have been harder for them also. But no buyer was prohibited to dump the coins as soon as he got them. Besides thet, the news went mainstream. Eventhough the bidding couldn't have a direct impact on the price maybe some holders could have decided that now it's the time to sell because of the news.

[makebitcoin]

I think the recent drop in prizes has more to do with the 51% share of the mining pools and not with this sale.

[bitgold]

As a bargain hunter, I love low prices. Too risky holding too much fiat, stock markets look frothy.   

[negafen]

The price didn't fall because of this, and it will not.
It's a private auction and has nothing to do with exchanges and therefore nothing to do with the current Bitcoin/USD price.

Market participants do not seem to agree with your right given the drop today.

[Parazyd]

The price didn't fall because of this, and it will not.
It's a private auction and has nothing to do with exchanges and therefore nothing to do with the current Bitcoin/USD price.

Market participants do not seem to agree with your right given the drop today.

The 51% situation contributed a lot to the drop. Don't disregard that.

[Gianluca95]

I'm enough worried about price of Bitcoin because the news that U.S. Government  wants to sell 30.000 BTC yesterday evening had drop the price of 60$ !

So, only time will give us the answer !