2.9k bitcoins is not a small amount of bitcoins, it is worth quite a lot, but when compared to the global valuation of bitcoins this amount is not that big. because if we look at how some time ago tesla sold their 4k bitcoins, it really caused the market to panic a little, but it didn't last long and finally the market gradually recovered. so there is nothing to worry about from this sale.

and i think the us government will not just sell all the bitcoins, they will also think about the economic impact of the sale. maybe they will sell in stages or sell directly to trusted buyers such as companies or other parties who are ready to accommodate that much bitcoin, so it won't affect the price of bitcoin that much.

In fact, the outflows from Grayscale's ETF are not sell orders, but rather a transfer of ownership from them to BlackRock. It is just like transferring Bitcoin from your old wallet to a new wallet, so selling 2900 will be more effective than Grayscale's ETF outflows because it is not a sell, but 2900 compared to Volume (24h) 531,375 BTC is not a big problem.

It's $118M worth of Bitcoin and surely it will impact the market to some extent and Bitcoin's price may drops during the sale. It's impact will not be significant as compare to the Gray Scale but it will surely cause some fear in the minds of the investors.

I think US government is taking some smart decisions to sell off their Bitcoin holdings and they may continue selling their Bitcoin holdings in small quantities during this bull run. I hope that the decisions that they take may not impact Bitcoin and its value in a inverse way.

Although, they can sell off the seized coins within days but they don't really want to dump the market as that won't be a good decision by them. If the market gets a huge dump then they will sell their Bitcoin at loss and that's why they won't do that.

That's not true at all. Much of the $2+ billion of bitcoin has been sold by Grayscale was not moved backed into other ETFs. I'm sure some of it was, but most of it wasn't. FTX alone accounted for over a billion dollars of the Grayscale exodus, and none of that was moved back into ETFs, and no doubt of the other billion of so of the Grayscale dump some of it also wasn't simply moved back into other ETFs. So yeah, the amount that the US govt is planning to sell is less than 10% of the net bitcoin selling from Grayscale recently.

The proposed amount they are planning to sell is not small either, we have known the Grayscale Bitcoin as a giant holder over the years, we may have to advise more on the US government to learn more from them when they are into this, though I don't see this causing a significant difference in the market price, just as there will always be time for everything, this is what they think they are upto now and they have their own reasons for that, but ordinarily, we may like to question on that why now when it is not halving yet before they are selling.

I know he wants to sound quirky but that's the right thing for US to do, bitcoin and the US SEC don't see eye to eye yet even though they're doing this purchase right now. They're testing the waters for the nth time, give the US the time they need to ease in lol.

Well, of course this $118 million worth of Bitcoin is nothing and I would say will not be making any dint in the overall market's direction plus this sale is to be made via bidding and will not be sold in any exchange...so essentially this would be just a change of ownership unless of course the new owner would deliver his BTC to Coinbase for example then it can have a limited impact. Maybe it is really time for the USA government to slowly get rid of the BTC it accumulated from Silkroad as it does not have any business in this arena.

Most likely these coins will be auctioned off like in the past. They won’t be sold on the open market. The way it works you can tell how much demand there will be based on the bids that are placed.

I remember back in 2014 or 2015 there was tons of bids for those bitcoins and they payed well over market for them, which indicated that we were in a strong bull market.

Was it sold? I did not know that FTX had money in Grayscale. Will the bankruptcy procedure allow selling it?



The sale in auctions takes place outside the market and at prices that are determined in the auction, so it will not affect the price of Bitcoin, especially since we all know that there is an opportunity for the price of Bitcoin to rise during the coming year. Whoever will buy this Bitcoin from the auction will definitely not sell it now, but it will be a reason for dumping the price from ATH in 2025.

It's like saying the US governments sale of 5 UH60L Black Hawk helicopters is going to matter to the world wide sale of helicopters.
FYI:
https://www.gsaauctions.gov/auctions/preview/269494
https://www.gsaauctions.gov/auctions/preview/269498
https://www.gsaauctions.gov/auctions/preview/269495
https://www.gsaauctions.gov/auctions/preview/269496
https://www.gsaauctions.gov/auctions/preview/269497

We only care here because it's BTC
There are plenty of people institutions out there with more BTC that can sell it tomorrow without telling anyone.

-Dave