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The Feds Are Ready To Sell $25 Million of Bitcoin Seized From The Silk Road

forbes.com

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Re: The Feds Are Ready To Sell $25 Million of Bitcoin Seized From The Silk Road

#11

Post by sebastienros »

Based on the current price it makes roughly 25K bitcoins, and using the current BUY backlog on MtGox, selling them would push the price back to $550. However such a volume will certainly create a panic wave and it could go below that.

If they are clever, they won't put everything on the market like this.

Re: The Feds Are Ready To Sell $25 Million of Bitcoin Seized From The Silk Road

#13

Post by BlackDeath3 »

jrockway wrote: post #6
ck2 wrote: post #2

So that will depress the price right? Time for some cheap BTC

I honestly don't think the Bitcoin market is sophisticated enough to react to events like this. Certainly, if the feds really want to sell and someone puts $0.01 on the order books for that size of a trade, and nobody else is around, it could be filled, but I don't see that happening.

It wouldn't be unprecedented. I believe that mass sells have caused price crashes numerous times in the past.

Perhaps I misunderstood you?

Re: The Feds Are Ready To Sell $25 Million of Bitcoin Seized From The Silk Road

#15

Post by alexcroox »

viraptor wrote: post #10

> approximately $25 million worth of Bitcoin will be auctioned off soon At least they won't sell it via usual exchanges in one go. That would make quite a mess... (bringing price down to ~0 for a while before everything rebalances)

Maybe that's exactly what they want to do to this rogue currency...

Re: The Feds Are Ready To Sell $25 Million of Bitcoin Seized From The Silk Road

#17

Post by slg »

The article speculates these Bitcoin will be auctioned off. I wonder if that would be the entire wallet as one lot. Not too many people have the resources and willingness to throw $25 million into Bitcoin outside of the Winklevoss twins and hedge funds. Odds are they might get a good discount, but that might be preferable to the Bitcoin economy than the government selling the coins in smaller lots. 30k coins suddenly flooding the market at once would cause a pretty dramatic drop in price.
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