Just a couple of minutes ago the Bitcoin price started to move upwards. As you can see from the Bitcoin price chart to the right, the price has taken a leap from around 595 USD per Bitcoin to reaching a high of 618 USD, and then stabilizing at around 613 USD per BTC. That’s a move of more than 20 USD in less than a couple of minutes. There has been no information published, as I’m aware of, that can explain this price movement at the current time being. The only real event that will take place today which will, and probably is, affecting the Bitcoin price is the US Marshals’ Bitcoin auction.
UPDATE:The Bitcoin price reached a top of 635 USD per Bitcoin and is now hovering between 630 USD and 625 USD per BTC.
Possible explanations for the Bitcoin price movement
The price movement we now saw for a couple of minutes ago are most likely just pure speculation by bag holders of fiat money. There are a few possible scenarios that could take place in the coming hours until the Bitcoin auction has finished. The scenarios are as follow:
1. Bag holders are only speculating that the final Bitcoin auction price will be higher than what most Bitcoin traders believe it will be, resulting in a race for the bulls. As you can see from our previous Bitcoin poll below, most people think the Bitcoin sell price for the auction will be around 500 to 550 USD per Bitcoin. If it is higher than that, trust is built in the market, and the price could move up to 650 USD or higher.
2. Someone knows something. One or more of the Bitcoin auction bidders might have enough information to be able to play the market before the auction results are publicized. Since it is “only” 30,000″ bitcoins that are being auctioned off, bidders with enough capital could put in such a high offering that they are certain that the selling price will either be their price, or even higher. This would result in, most likely, a new Bitcoin price floor that is much higher than the one we see at the moment. This information could be enough for any of the big bidders to buy more bitcoins before the auction end.
3. A big whale is trying to get the market to believe that he/she knows what happens with the Bitcoin auction and what the sell price will be. Since the whale (whales) has bought more than 1000 bitcoins in less than a few minutes, and by doing so is getting other traders to join in, it is a reason to believe that he/she wants the market to continue and push the price upwards. The whale can then sit back, watch the price rise, and do a massive sell off just before the auction results are released. This means that whatever happens now are pure manipulation.
4. Bitcoin traders genuinely believe that today’s Bitcoin auction is positive for Bitcoin and the Bitcoin price. They are now positioning themselves because they believe that the Bitcoin price will move even further after the results are released.
The Auction Results might not get known by the Public
Even though the auction result is a public interest, we might not know at what price, nor to whom the bitcoins are sold to. As Bman writes in our forum:
“The USMS will contact the winning and losing bidders directly.
The USMS will not publicly release any information pertaining to the auction process or results.”
The Bitcoin community might get the information directly from the winning bidders themselves, but have to trust whether or not the information delivered is correct or not. There could be a lot of manipulation going on now, be careful.
Do you have any more scenarios or inputs? Please comment below.
Disclaimer: CCN nor I am responsible for any losses or gains you do based on speculative information from CCN. This is highly speculative and should be read as is.