ForexMinute.com – The US Marshals Service (USMS) closed the auctioning of 50,000 Bitcoins confiscated during the closing of online drug marketplace Silk Road last year.
Alongside the auction’s closure came statistics, which displayed a lower bidder turnout than the first auction held this June. According to the sources, the first Bitcoin auction attracted a total of 45 bidders, who cohesively placed 63 bids throughout the event. While today, the auction only attracted 11 bidders, indicating a turnout drop of around 75 percent than the last auction.
There is a number of factors that could be associated with the lower turnout, the major one being the 40 percent decline in Bitcoin price since the June auction. The landscape of Bitcoin trading market has completely changed in the past few months, mostly due to the arrival of manipulative methods like extra-high leverages, margin trading, etc. During the previous auction, the sentiment in the market was strongly bullish. But this time, it is completely contradictory. Even then, the drop hasn’t demoralized those 11 bidders who certainly are bullish on Bitcoin, thinks Gil Luria, a financial analyst at Wedbush Securities Inc.
“I do not expect the difference in price from the last auction to affect the activity — the major bidders have been involved with bitcoin for a while and do not appear to be concerned about the current price,” Luria told Bloomberg. “Even though the market for bitcoin is becoming increasingly liquid with a growing number of venues, the ability to buy big blocks from the government is still an attractive proposition.”
The USMS is now planning to schedule a date for their next auction, which will feature an additional of 94,000 BTC seized from Silk Road.
To contact the reporter of the story: Yashu Gola at email@example.com