Have you ever wonder what can impact the price of Bitcoin BTC dramatically? Well one way for sure is this today. USMS Asset Forfeiture Sale Bitcoin June 2014 to the publicThis website is a government website and it’s auctioning close to 30,000 (thirty thousand) BTC Bitcoins to the public. Anyone whom have money can buy it, you don’t have to buy it from the exchanger. So who’s going to get this $20 Million worth of Bitcoin? well anyone! anyone whom have $200,000 cash deposit or as insurance to proof that you’re serious to get this 30,000 Bitcoin.
But wait! this is not a transfer of 30,000 Bitcoins into your wallet nor the wallet that contain 30,000 Bitcoins where you can easily get to and start transferring and selling it right away I don’t think. I think it is more complicated than that. The wallet files contained these Bitcoin, is it password protected? encrypted? Well I don’t really know much about it. What I do know is that when these Bitcoin being sold on exchange, the price of Bitcoin will for sure dropped to the ground. It’s obvious that the more people buy Bitcoin, the price of Bitcoin rise go up and up, the more Bitcoin being purchased, the higher the price of Bitcoin rise skyrocketed as investors buys Bitcoin.
I don’t know what really will happen. However at the moment, the price of Bitcoin BTC are falling dropping from 650 to 550 in one day, or actually less than a day, perhaps after the news broke out that Government are auctioning 30,000 Bitcoins and taking aggressive action against Bitcoin “silk road” mostly unethical activities though.
This action from the Federal US Government really going to hurt Bitcoin price for sure, it will tumble and hit to possible single digit when these 30,000 coins are being sold cashed out. No, I’m not exaggerating! Look at MtGox for example, causing the price of Bitcoin rise! to over one thousand dollars per BTC, then something happen, MtGox loss all the Bitcoins? Then price tumbled looses 50% value. So this action from government we don’t think it will cause Bitcoin to loose 50%? So if the price now is $550, what would 50% be? so maybe not down to single digit, but maybe $100s