US Government Sells $215M in Silk Road Bitcoin, Plans to Dump Another Billion | Hacker News Reader

US Government Sells $215M in Silk Road Bitcoin, Plans to Dump Another Billion

decrypt.co

46 pointspaulpauper19 comments

Could buy another few days before the debt limit hits

It’s only about a half hour of federal spending, so probably not.

This can explain why bitcoin always falls when the stock market is open, like today . Possibly it is being liquidated on exchanges with stock market is open. it's possible the coins are being sold during market hours.

as evidence of this phenomenon, a strategy that shorts bitcoin when the stock market opens and goes long QQQ, then closes both pairs when the stock market closes, would have made fifty percent over the past year by doing this everyday

https://i.imgur.com/gj8EluF.png

it even made profit this year despite bitcoin being up a lot

Dollar or vol neutral? Those two assets have dramatically different characteristics.

dollar

Very cool! What tool did you use to simulate this? What does the code/query (if any) look like?

It feels unsurprising that Bitcoin moves more when markets are open and stuff is happening in the finance world.

but the bias is usually negative, hence easy $ by shorting it

Yeah, I can see that. Fair enough!

Who decides it's time to sell this?

Probably not public info.

I believe it was mostly seized by the FBI, and if they're anything like the CIA [0] (which they are), we won't know until shit hits the fan.

That is straight up someone else's money who was not part of any organized crime or any group really. And the charges did not claim the $ came from murder or horrible things like that. Next of kin should get 100% of that money.

[0] https://en.wikipedia.org/wiki/Iran%E2%80%93Contra_affair#Fir...

This article is from March. Is it somehow newly relevant today?

Good, every time they dump they lose less future leverage

Nice of them to sell near the bottom and help me accumulate more.

Are you feeling bullish?

For next year or the year after, yes.

> The crypto markets may be looking uncertain right now but some are still making money from Bitcoin sales: the U.S. government.

Oh yup they do. The IRS also claims FTX.us must pay them $44 billions and because it's the IRS they get preferential treatment and are to be paid those $44 billions before customers get to get their money.

So it's all "fake monopoly money" and whatnots, but the US government is certainly enjoying very real money from all this, not to mention the tax on realized gains they're making too.

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