US Marshals Reject the Bids from SecondMarket and Pantera Capital

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Background of financial currency Bitcoin

The two major bidders, SecondMarket and Pantera Capital, have not been able to compete successfully as the US Marshals have rejected their bids in the most hotly anticipated Bitcoin auction of more than 30,000 coins. The rejection of the bids by the two companies according to some market observers is a positive indication as it shows that there are many investors in queue.

Talking to media professionals, Pantera Capital’s CEO Dan Morehead said that his firm was not able to purchase the Bitcoins because their bid was below the market price. He added that the point is when this auction was announced, Bitcoin was trading at $634 and the general view was that the supply would take the price down.

However, as the prices of Bitcoin did not fall, the bid by the company fell short to the ones by the other bidders. The outcome of the entire affair has been unexpected for many market observers as contrary to belief that the prices will fall, they actually went up. The auction according to a spokeswoman for the US Marshals Service attracted 45 bidders.

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45 Bidders and 63 Bids for 30,000 Bitcoins

The spokesperson also informed that the 12-hour auction for about $17.7 million in Bitcoin received 63 bids; however, he refused to disclose the bidding price of the coins. Earlier ForexMinute had reported that Barry Silbert’s company too had sent its bid for the Bitcoin that were being auctioned by the government.

Silbert had earlier tweeted that he attracted a group of investors interested in getting a share of the Bitcoin auction by offering lower bid sizes and a reduced upfront commitment. However, now it looks all his plans failed as his bids have fallen short to the requirement by the US Marshals as other companies paid higher bidding amounts.

The day of auction saw an increase in the exchange rate of Bitcoin as it went up 6.8% and continued to increase the whole day and day after. The entire development is being seen as a positive one by Bitcoin analysts as they believe that it not just showed that the US government stamped it legitimate.

The number of bidders according to analysts shows that Bitcoin is here to stay. Also, multiple investors bidding for the digital currency shows that they are here to provide the much needed stability to the industry and reduce volatility in the market.

To contact the reporter of this story email: Deepak Tiwari at deepak@forexminute.com