3 Dec 2014
Ross Ulbricht bitcoins likely to sell for discount at USMS auction – CoinDesk
FXStreet (Barcelona) - The CoinDesk Analysis Team cites Citi Groups research note which mentions that the planned auction of the seized 50,000 BTC by the US Marshals Service (USMS) will be beneficial for the participants who are expected to obtain the bitcoins at a steep discount.
Key Quotes
“The US Marshals Service (USMS) is set to auction off 50,000 BTC seized from alleged Silk Road mastermind Ross Ulbricht this Thursday, and if a new research note from financial giant Citi proves accurate, participants may be able to obtain bitcoins at a steep discount.”
“Penned by Citi's global head of FX strategy Steven Englander, the internal note argues that bitcoin's recent decline in value against the dollar will cause participants to "lowball their bids relative to the current market price".”
“Englander asserted that the prospect of future bitcoin auctions is likely to influence bidder behavior, as the USMS has indicated it will soon seek to sell off the roughly 94,000 BTC still in its possession in the coming months.”
“"My expectation is that most bids will be aggressively to the downside in the hope of getting a post-Black Friday bargain," Englander said. "Bids for a block or two may be at a moderate discount to the market price, but I would expect the bid for the biggest number of blocks to be at a hefty discount."
“Still, Englander said this outcome is likely to be influenced by whether participants desire to buy and hold the currency, a strategy evoked by Draper, or simply buy to sell the bitcoins on the open market.”
Key Quotes
“The US Marshals Service (USMS) is set to auction off 50,000 BTC seized from alleged Silk Road mastermind Ross Ulbricht this Thursday, and if a new research note from financial giant Citi proves accurate, participants may be able to obtain bitcoins at a steep discount.”
“Penned by Citi's global head of FX strategy Steven Englander, the internal note argues that bitcoin's recent decline in value against the dollar will cause participants to "lowball their bids relative to the current market price".”
“Englander asserted that the prospect of future bitcoin auctions is likely to influence bidder behavior, as the USMS has indicated it will soon seek to sell off the roughly 94,000 BTC still in its possession in the coming months.”
“"My expectation is that most bids will be aggressively to the downside in the hope of getting a post-Black Friday bargain," Englander said. "Bids for a block or two may be at a moderate discount to the market price, but I would expect the bid for the biggest number of blocks to be at a hefty discount."
“Still, Englander said this outcome is likely to be influenced by whether participants desire to buy and hold the currency, a strategy evoked by Draper, or simply buy to sell the bitcoins on the open market.”