When gold & silver get dumped onto the market, the price drops. Will Bitcoin be able to withstand this dump? Here’s the details…
Gold & silver investors know all too well what happens when a bunch of paper gold or paper silver is dumped on the market at one time.
Usually the price drops, but how far and how long depends on the size of the dump and the overall volume in the market when the dump takes place.
Fast forward to today:
The US Marshals Service has announced that it will be auctioning off approximately 2,170 Bitcoins seized in the course of various federal criminal, civil, and administrative cases, a press release.
Here’s the simple and to the point press release:
Washington D.C. – The U.S. Marshals are auctioning approximately 2,170 bitcoins in connection with various federal criminal, civil and administrative cases during a six-hour period March 19 from 8 a.m. until 2 p.m. EDT.
To register, potential bidders must complete all registration requirements by noon EDT March 14. A $200,000 deposit is required to participate. Deposits will be returned to non-winning bidders.
Bids will be accepted by email from preregistered bidders only. The bitcoins are offered for sale in 14 blocks: two blocks of 500 bitcoins, 11 blocks of 100 bitcoins and one block of approximately 70 bitcoins.
The winning bidder will be notified March 19. Further details on the auction are available atwww.usmarshals.gov/assets/2018/marchbitcoinauction.
Additional information about the U.S. Marshals Service can be found at http://www.usmarshals.gov.
Here’s some additional information from Coin Telegraph:
The range of cases from which the bitcoins were seized is listed in an official notice posted on the US Marshals Service website. Among the cases listed is that of Shaun Bridges, the Secret Service agent who was convicted of stealing $800,000 in bitcoins in 2015.
The US Marshals Service has previously auctioned sums of Bitcoin seized in the course of civil and criminal proceedings. On Jan. 22, 2018, the agency sold 3,813 BTC, a sum that was worth over $40 mln by that day’s exchange prices.
Previous to this year, the last US Marshals auction of seized Bitcoin was in August, 2016 where 2,700 BTC were sold off. Estimated market value at the time was nearly $1.6 mln.
Notice what happened the last time the US Marshalls dumped Bitcoin onto the market:
That is not to say the same will happen this time, but today’s price action is rather interesting:
And now traders have the ability to short Bitcoin.
So don’t be surprised if we see increased selling as we get closer to the date.
Then, what happens if the price is dropping as we head into the sale?
Is somebody really going to want to catch a falling knife?
We’ll see, so make sure to pick up some popcorn.
– Half Dollar