The US To Auction $1.6 Million Worth of Seized Bitcoin Later This Month
The US gov. is planning to auction over 2,700 BTC (worth around $1.6m at current prices) that were forfeited during several cases (also some from the well known bitcoin black market - Silk Road) on 22th August (auction registration opened till 18th August)
Read more on Forbes
What do you think will this have any impact on prices or not?
I think it would have a slight negative impact on the market as we all know when the government gets involved it is always bad. I would bet they will sell them for a fraction of their value just like they do with asset forfeiture, But this time its bitcoin.
It's an auction. They're selling for whatever people will pay.
Anyone bidding on this that is intelligent will pay any price up to the value of those wallets. So, while a relatively large, publicized increase to the supply of BTC might lead to a small drop in value, it also has the potential to publicize BTC, leading to greater demand in the long term.