Bitcoin Surges as US Marshalls Prepare for Final Silk Road Bitcoin Auction
As Bitcoin makes its biggest gains in two years, the US Marshall Service prepares its final auction of bitcoins seized during the Silk Road investigation from Ross Ulbricht.
Bitcoin has been consolidating since 2013, as headlines like the collapse of Mt. Gox and the Silk Road have colored people’s view of the cryptocurrency.
Over the past seven weeks, Bitcoin has sustained its longest run since November 2013. Recently, positive news has painted the picture, as major demand out of China drives up the price of the currency. The central bank there has cut rates multiple times. Other developments, such as the opening of the Gemini Bitcoin exchange, have also been given as an explanation for the increasing Bitcoin price.
In recent months, major financial players have warmed up to Bitcoin and the technology backing it, such as banks Goldman Sachs, Morgan Stanley and others.
Bloomberg expects Bitcoin to reach $400 over the next 12 months “based on expectations for broad adoption of bitcoin applications within the next ten years.”
Bitcoin demand in China could have been sparked by the massive amount of capital flows out of China this year, and in particularly this month. According to Bloomberg, $194 billion was sent out of the country in September. Altogether, $669 billion have flowed out of the country this year.
Positive news has come out of Europe, as well, as the European Union Court said in October the cryptocurrency would not be subject to value added tax. Bitcoin’s most recent rise in price, before the current advance, came amid speculation of a Greece exit from the EU.
The current price rise has come in the weeks ahead of the final auction by US Marshall Service of coins seized during the Silk Road Investigation.
The US Marshall Service has been auctioning of Silk Road assets for the past year. The final auction will include 44,341 bitcoins or more than $15 million worth. The auction is set to take place between a six-hour period, starting at 8 a.m. and ending at 2 p.m. on November 5.
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