[2014-06-210] Bitcoin Price Looks to Slip Further in Wake of Government Auction

[erono]

http://www.equities.com/editors-desk/currencies-forex/bitcoin-price-looks-to-slip-further-in-wake-of-government-auction

Like the 140,000 BTC that were personally owned by Silk Road leader Ross Ulbricht, which was also seized by the government in the raid. Ulbricht has sued for reclamation of those coins, leaving them for the timebeing in cold storage. Also out of circulation: the 1 million or so BTC owned by Satoshi Nakamoto, the mysterious creator(s) of bitcoin, whose bitcoin have not moved since being mined in 2009 in the dawn of bitcoin’s existence.

Even not factoring in dormant bitcoin, a 29,566 BTC haul is nothing to sneeze at. If bitcoin were gold, of which 165,000 tons have been mined in human history, the US Marshal bitcoin auction would be the equivalent of the one-day sale of 379 tons of the yellow metal, or about 8 percent of the entire gold supply in Fort Knox.
- See more at: http://www.equities.com/editors-desk/currencies-forex/bitcoin-price-looks-to-slip-further-in-wake-of-government-auction#sthash.jRI6qFUS.dpuf

[CoinMode]

Wow, what a crazy news article for it to come out on the 210th of June, 2014. I never thought I would see the day.

[zeetubes]

Wow, what a crazy news article for it to come out on the 210th of June, 2014. I never thought I would see the day.

This month does feel like it's dragging out a bit.

[nwfella]

Wow, what a crazy news article for it to come out on the 210th of June, 2014. I never thought I would see the day.

This month does feel like it's dragging out a bit.

Is it just me or has time literally seemed to literally slow down since announcement of auction?  I can't be the only one :p

Anyway, I suspect price will start picking backup by mid July...fingers crossed anyway.

[Kprawn]

Imagine if they dropped the full load, where would the price be then? Supply and demand @work in BTC

We need to stimulate demand more. Only way to do that, would be to increase the retail use of BTC but as the Op says, so many dormant coins out of circulation, and most people hoarding their coins in cold storage, in hope of the next $1000 bubble, we are going nowhere fast.

Only demand now, driving this, is the demand to hoard more BTC. "Trickle, trickle trickle"......

Ps... Or everyone scared, not to be the guy, who bought the most expensive pizza. 

[teukon]

From the article:

In an interesting turn of events, the identities of the bitcoin auction participants were accidentally leaked by the US Marshal’s service in an email when some poor schlub forgot to BCC the names of the potential buyers.

[cr1776]

"Price Looks to Slip Further"

What a meaningless phrase.  Over what period? For how long? From what starting price?

Really though if they really were seers they would be rich and not writing for a magazine.

[bryant.coleman]

Actually it is a good thing that the FBI is auctioning off all those coins. Having them in the FBI hands is not good. Hopefully, some pro-Bitcoin institutional investor will buy them.

[Lethn]

Wow, what a crazy news article for it to come out on the 210th of June, 2014. I never thought I would see the day.

This month does feel like it's dragging out a bit.

Is it just me or has time literally seemed to literally slow down since announcement of auction?  I can't be the only one :p

Anyway, I suspect price will start picking backup by mid July...fingers crossed anyway.

It's the heat >_< I don't think anybody can do anything in the heat no matter how much they rant about summer being awesome Everything has slowed down for me as well, need air conditioning.

On a more on topic note, we all knew that the price drop was coming, it's to be expected an extremely large chunk of coins is entering the market so naturally that will drop the price for awhile.

[hloren70]

I really do not think price will be affected much by this. The way the auction is set up, only serious investors are involved. These coins will not be dumped, they will be saved or invested.

[Finchy]

Eh, seems to have regained again already. Even if it does drop down it'll bounce back again pretty fast.

[fryarminer]

Whoever wins the auction will probably keep the coin. They won't turn around and sell it right away. So the only reason why the price would drop is if people THINK it's going to drop and start selling while the price is "high".

[ThomasCrowne]

Sure hope the price doesn't slip much further.  Plan on holding either way though.

[bryant.coleman]

Eh, seems to have regained again already. Even if it does drop down it'll bounce back again pretty fast.

There is a lot of demand for the coins, as can be seen from the leaked list of potential buyers. I don't think that the coins will be auctioned for a substantial discount. Once the auction is successfully completed, BTC will climb to 700+.