The most exciting thing according to the news is, the US government is selling those BTC on Coinbase. Yeah, you heard right, that exchange against which the same governments have opened several cases including with the Binance Exchange.


The amount is huge and I think it will put some effect on the market too but the market is already opened before $30.6 as we can see, the market was opening around $30.6k in the last two days but today it opened around $30.3k which directly indicates the impact of this transaction and maybe this news didn't get that much hype which could create the fud so that's why the effect is lesser than before. And I also heard the news of MT gox too of which I am not fully aware now.

i think they have rescheduled the payment in October. so we might see another downtrend in October. And as you said, these transactions will be made in batches and if the next batch fall into the month of October then we can have another huge downtrend which could retarget $29k again. Or maybe more.

This has happened several times, and it will happen to every asset seized by the government, which is to be sold in an auction and publicly, and this is not limited to Bitcoin. Sometimes the government confiscates cars, home appliances, plots of land, and other things, but I wonder why they were sold to Coinbase instead of being auctioned.There is clear cooperation between some federal institutions and Coinbase, and these payments may be liquidity paid by the government in exchange for data exchange from it, or that the auction was conducted internally and Coinbase won the auction.

These auction stories are funny. Someone made a fortune buying bitcoin that was seized from an auction at a price lower than the average price of bitcoin.

Just wondering when we'll hear about chipmixer seized coins.

This is a common practice by governments of all nations not only in the US. Recently the US government authorities showed interest in selling some assets which include bitcoins seized from a fraudster from my country. The Silk Road Bitcoin will be sold to pay the $183 million restitution fine placed on Ulbricht by the court in 2015. In auction sales, the highest bidder gets the opportunity to buy the lot. Maybe Coinbase was the highest bidder that was why the coins was sold to the exchange.

I don't think the impact on the market will be massive. The market will stabilize after a few days. This year is an important year for every investor because of next year's halving so any price drop now is an ample opportunity to buy. This news will not cause FUD to well-informed bitcoiners.

That is why I asked why such coins are mostly sold in a public auction that has been announced for a while. They are rarely sold privately or without an announcement, because the sale took place for the best price and not for the price of bitcoin in spot market.

These coins are a good opportunity for anyone who wants to buy clean Bitcoin from dirty sources.

In terms of volume, 10,000 bitcoins are less than bitcoins that are traded daily, and therefore will not affect the price. In terms of news, their impact is positive, as these currencies are part of the bad past of bitcoin, which becomes brighter day after day.

Hmm, maybe this was why Bitcoin is cheaper on Binance US two days ago? This is another price manipulation because I can't help but think why now? They have the chance to sell those Bitcoin when FTX madness was all over the place, or oh ye they will be selling lower, anyway I am not worried or anything, because it's just a few numbers of Bitcoin, this will also pass like nothing happened, I am just glad that Bitcoin can never be in control of any centralized authority, if it's the other way around it will be more serious than what we are seeing right now.

I don't think there is something impressive here, I mean perhaps it's just the United States government deemed that they have to sell it.

I still remember though that way before that they have auctions,

https://www.usmarshals.gov/what-we-do/asset-forfeiture/sale-approximately-404158424932-bitcoin
https://www.gsa.gov/about-us/newsroom/news-releases/gsa-announces-latest-cryptocurrency-auction-06082022

So it's a normal thing to do for the government.

In theory, you are not wrong, but in practice I think it is not that simple because the market is very sensitive to everything, even small news causes bitcoin to be dumped, let alone sell 10k bitcoins. The market is not only moving according to supply and demand, it is still being manipulated, and it is not too difficult for market makers to hype news to create panic in the market. But according to a news I read today, the US government has no intention of selling all those bitcoins at once, they will sell it between now and the end of the year and the number of bitcoins is up to 41k bitcoins, not just 10k bitcoins.

Are they really that bad in trading that they sell their priced loot when the price is at the bottom?  Why not sell it while hitting the ATH or are they just coordinating with Coinbase for their surveillance?  Coinbase is the custodial for Blackrock's ETF.


That's sort of what it will be. Tim Draper bought some of them from the government and sure it was already clean. The coins don't even need to be mixed but just declared clean.

They are not traders, neither are they supposed to speculate with seized and forfeited funds. After stolen funds have been recovered by the government and the proceedings and process that follows are almost complete, they will auction the recovered BTC's, and the winning bidder pays and gets to keep the coins. Though the U.S. government is holding a large amount of BTC's that they have recovered and confiscated, these funds are usually sold in batches and the government is not holding on to it for the purpose of speculating on the price.