Bitcoin Poised for a drop?

F.B.I. Got Coin
F.B.I. Got Coin

Bitcoin is about to take a hit. It is already declining in value due to the news.

The news are simple: on June 27th, the Federal Bureau of Investigations will sell the Bitcoin that’s been seized from the wallets of Ross Ulbricht who’s suspected to be the alleged “Dread Pirate Roberts”. The huge bitcoin loot amounts to just under 30,000 Bitcoins, worth about 17 Million dollars by today’s values.

The F.B.I. is planning to split the amount into 10 blocks, 9 blocks of 3000 Bitcoins each, and the last one is of the remaining balance – 2656.51306529 Bitcoins.

People and organizations who are interested in bidding, will have to produce a deposit of 200,000 dollars as well as a government issued photo ID and a filled PDF registration form to prove their identity and legitimecy.

The winner/s will be announced 3 days later, on June 30th. The psychological effect of this event is bigger than the normal effect of such a sale. This amount of bitcoin is a day’s worth of one of the bitcoin exchanges and should not impact the general value significantly.

However, it is my opinion that Bitcoin will not only recover, but this event will drive the next jump in value. The reason is that this kind of event induces a lot of publicity, and the media coverage will push the public interest in bitcoin even further than before.

Also, the sale will push more Bitcoin into the mass market and that will give it another boost.

What do you think?

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