Bitcoin experienced a sudden drop in prices from $ 10,000 to $ 9,507 two days ago. According to an analyst, Simon Peters, this decline could be related to the US Federal Service, which auctioned Bitcoins.
Sudden drop in BTC
On February 18, the officially seized BTCs were put up for auction. The total value of the auctioned BTC exceeded US $ 37 million. On February 18, US Feds sold a total of 4,041 Bitcoins that were confiscated by the state and were criminal.
Simon Peters, an eToro trading analyst, said:
“Put simply, bitcoin’s price drop was due to a dump in the market”
“This followed a United States Marshals Service announcement earlier this week stating they had sold off roughly 4,000 BTC (around $37 million) that had been seized from criminal cases.”
Drugs are evil
Part of the BTC concerned the sale and distribution of drugs. One Alabama vendor, Sean Shaughnessy, was confiscated over $ 200,000 in cryptocurrencies. He was charged with money laundering and drug distribution.
Simon Peters next commented:
“Analysts feared the auction winner could potentially make a cash gain by selling the bitcoin on a public exchange, especially if they’ve acquired the coins for below market price.”
Whale Alert Twitter Account, following large cryptocurrency movements, reported on February 18 that 6000 BTC had been moved from an unknown wallet to Bitfinex. Whether or not it was an auction win is not yet clear.
Simon Peters added to the whole situation :
“What is evident is that overall liquidity of the crypto market must improve in order to prevent large market orders leading to such volatile price swings in the future.”
Similar movements may still be current due to the high volatility of Bitcoin and other cryptocurrencies. For these cases, it is important to monitor sites that point to large shifts in virtual currencies.