Investing.com - Bitcoin prices rallied above the $600-level on Monday, after the U.S. Marshals Service auctioned nearly 30,000 bitcoins seized from the infamous online black market Silk Road late last week.
Bitcoin (BTC/USD) rose to a session high of $639.20 on Slovenia-based BitStamp, the most since June 11, before trimming losses to last trade at $627.48 during U.S. morning hours, up 5.3%, or $31.56.
The price of a Bitcoin on Bulgaria-based BTC-e jumped 6.26%, or $36.92, to trade at $626.60.
According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency tacked on 4.8% to trade at $627.37.
The U.S. Marshals Service auctioned approximately 30,000 Bitcoins, valued at nearly $18 million, on June 27. The auction ran for nearly 12 hours and the successful bidders are due to notified later Monday.
The bitcoins were auctioned off in nine blocks of 3,000 bitcoins and one of 2,657 coins. The virtual currency up for auction was seized as part of the Federal Bureau of Investigation's crackdown on the Silk Road online marketplace in 2013.
Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.