1.5 hours (should be before 5pm EST time) left till US Marshals announces the winning bidder on 50k bitcoin Auction
Get ready for roller coaster ride across all crypto markets.
So basically if the winning bid was $350 we'll see panic buying and if it was $200 we'll see hudge dumpage?
Hard to tell because they usually do not announce the price of the winning bid. Even the winner last time refused to say how much he paid for 1 btc. But last time we saw a price increase till the auction day and then gradual decline. I have no clue how market will behave this time.
If the winner paid more than $300 then why wouldn't he say it publicly? It can only raise the value of the coins he jut bought.
I think it makes no sense to pay more than the market price for a bulk purchase. If anything they should pay a little bit below market. I guess it will come down to who won the bid, as people would speculate about the person's intention, whether is a known supporter, a completely new player, etc.
i say they pay over market, for a single fact:
- these coins are sold by the gov -
that means the buyer has not to deal with an unsecure counterparty
he can prove where he gets the coins and what he paid for:
- which is very important for big players because if bitcoin goes down they can substract the lose from theire taxes
- and they can prove that there coins are legit in all points no fear to get accused of moneylaundering or something like that
and second i guess the buyers are no shortterm investors its more longterms like tim draper who bought the first stack to provide liquidity to his own products (and upcoming products)
So my conclution is they don't care to pay over market, because the buy conditions (from gov) are that great. (also my guess is it doesn't really affect the market!)
just my two duffs
