Bitcoin Price Trending Downwards, Awaiting the Bitcoin Auction Results?

June 25, 2014

The Bitcoin price is trending downwards today. It has adjusted from ca. 585 USD per Bitcoin to a level around 560 USD per Bitcoin. I cannot see any other reasons for the downtrend than traders being nervous of the Bitcoin auction that has a deadline on Friday, June 27th. US Marshals will auction off 29,656 bitcoins to the highest bidders and it may affect the Bitcoin value.

The bitcoins that are being auctioned off are the confiscated bitcoins from the online drug marketplace Silk Road that was taken down last year, following the arrest of the creator Ross Ulbricht.


What will happen on Friday with the Bitcoin price?

Probably not much. The deadline for making offers are on Friday, but the final session for awarding the bitcoins is due on Monday June 30th. So unless traders receive inside information, the Bitcoin price will stay somewhat stable on Friday. The Bitcoin price will most likely be sliding up and down until Friday, and we could see some big movements during the weekend and before/after the auction has ended on Monday.

What do you think? Let us know in the comment field.

What will happen with the Bitcoin price after the results are made public?

It is hard to say what will happen when the final results are made public. There are many different factors that will affect the Bitcoin traders. A few of these factors might be:

  • The buyers. Who is buying the bitcoins?
  • The reasons. Why are the buyers buying the bitcoins? Do they want to sell them, store them, or use them for a specific purpose?
  • The price. At what price was the bitcoins bought for?

If Bitcoin traders think that the average price of the auction will be around 500 USD per Bitcoin (vote below), and it turns out that the price is much lower, around 300 USD per Bitcoin, I’m afraid that the market will get nervous. This could cause the Bitcoin value to plunge. However, if the sell price is higher and closer to what the Bitcoin traders think is an OK value, the market may react positive with a spiking Bitcoin price.

All Bitcoin traders should be on a high alert in these coming days. CCN will follow the situation closely.

Poll: What is the expected Bitcoin price of the auction?

Other users are also connecting the falling Bitcoin price with the Bitcoin auction.

thoughtrationality writes on Reddit:

Thinking of buying some bitcoins right now as the price dropped probably due to the auction

cybersasho says:

yes – definitely it’s a great long-term buying opportunity. I’d buy half now and half tomorrow.

While Cawley22 responds:

I would wait, I don’t think we have stopped dropping yet. $550 is a good support, wait for that, if it breaks $550 then for sure wait because it should drop a lot from there. This is just my opinion though, don’t act on what I say alone. My gut says dropping until the auction is done, then BIG rebound after that.

What do you think? Write in the comment field below.

Featured image by Shutterstock.

Last modified (UTC): June 30, 2014 08:29

Jonas Borchgrevink @JonasBorch

Founder of and Passionate about how technology can empower people to create a more just and sustainable world.