Hey everyone. You may have been surprised today while Gold and metals moved and stock market dropped Bitcoin also dropped while it normally goes up like gold does when market experiences theses types or drops. Typically when markets become volatile people flock to metals, oil and Bitcoin. However we did not see this happen with Bitcoin but the opposite. We went down and why? I surmise it was due to the US Marshals auction of about 4K bitcoin worth about $40 million USD.
Government Seized Auction
The US Marshals Service put up 4,040.54069820 Bitcoin up for auction in lots. This isnt the first time they have done this too. Back in 2014 they auctioned off 30,000 Bitcoin which sold for 1.7 million under market value at the time.
The auction featured four lots of 2,500 BTC, 1,000 BTC, 500 BTC, and 40.54069820 BTC. There were only two winners totaling 38 bids with 18 bidders and total. The Bitcoin was successfully transferred to the winners.
One of two things happened here. I could be wrong but they are worth mentioning.
Bitcoin holders could see the writting on the wall and sold their holdings and mined coins in anticipation of these two winners of the auctions dumping these "new" bitcoin on the market that they won "cheaper" by auction. The min bid for each lot was 200k with the smallest lot being about 41 btc valued at about 400k even if they won the auction around 300k they still are up and could dump on market for profit. It is unknown at the time of writting this the end resluts of winning bids value. What does this mean? There could be another more drastic dump coming soon?
Since winning bidders already have the Bitcoin in their possession and we experienced a dump one could assume they unloaded their new found bitcoin for profit. What does this mean? We could see a better upwards movement in response to whats happening in the markets. Those who bought in at the low could see some nice returns?