On Tuesday February 18th, the US marshalls hosted an auction for just over 4000 BTC which seems to have found its way to the market today with a significant sell order.
Dirty Money Sell Offs
This wouldn't be the first time an FBI Bitcoin bust has resulted in a significant dump on the markets.
In September of 2018 Bitcoin traders witnessed 111,000 BTC being dumped onto the market that sparked a sell off of 12% of the entire market cap. The coins came from a mysterious wallet that remained inactive for 4 years up until that point, ironically immediately after Silk Road was shut down. The coins have been rumoured to have been linked to the founder himself Ross Ulbricht.
Which is another fascinating topic, I've been working on a piece for the last few weeks telling the entire story in great detail that I plan on publishing later this evening.
Several significant dumps have been linked to Silk Road vendors over the last 8 years. In October 2013, as the site was shut down almost 20,000 Bitcoin were dumped onto the market which resulted in nearly a 40% crash in Bitcoin.
Just over a year later in 2014 another 50,000 were sold off.
In 2015 another Silk Road sell off of 30,000 BTC.
I'm sure there are several more sell offs from smaller vendors from the market but almost annually Silk Road Bitcoins have found their way to the market when the price begins to pump. This is just a micro fraction of the total coins that made their way through the channels within Silk Road, a total of 9.5 Million Bitcoin ($95 Billion in today's USD) are believed to have been exchanged on the site during its lifetime. So does that mean the sale today is just the beginning of another major sell off?