[losvedir]

It's not clear to me whether this drives the price up or down. Sure, naively, it's more supply therefore lower prices. However, it does lend an air of legitimacy to Bitcoin and will likely raise awareness as it gets played out on mainstream media.

In other words, it will likely affect both the supply of and demand for Bitcoin.

[true_religion]

Well the government considers bitcoin to be a commodity and not a currency. So they're selling the commodity they seized, no different than selling a fleet of ferraris and armani suits seized in another drug raid.