Experts believe Mt. Gox's $10 billion Bitcoin and Bitcoin Cash distribution will not significantly affect BTC prices or market sentiment.
Mt. Gox creditors, including long-time market participants, expect minimal and short-lived effects on $BTC Bitcoin prices. Many plan to hold their coins or sell gradually as BTC prices rise, with some seeing a bullish cup and handle pattern indicating potential for a breakout.
Recently, the Mt. Gox Rehabilitation Trustee transferred nearly $9.63 billion in Bitcoin and Bitcoin Cash to new wallets. This move caused initial panic, but experts dismissed concerns of a major BTC price drop. Factors such as a bullish market, potential Fed rate cuts, and better reinvestment opportunities make creditors hesitant to sell their holdings.
No Major Impact Expected
The troubled exchange, Mt. Gox, is nearing payouts to creditors, moving $9.63 billion in Bitcoin and Bitcoin Cash in preparation. BTC prices initially fell when the trustee moved the funds, but the impact is expected to be temporary.
Creditor strategies vary. Some, like Blockstream Corp.’s CEO Adam Back, plan to hold their distributions, anticipating higher prices in a bullish market. Others, such as Off the Chain Capital, intend to sell only after identifying superior investment opportunities. Most creditors view Bitcoin as a long-term value store, further reducing the likelihood of a market flood.
Scale of Impact
Mt. Gox plans to distribute nearly 95,000 Bitcoin and a similar amount of Bitcoin Cash this year. This represents about 75% of their total holdings. Despite this, many believe Bitcoin is on track to reach $100,000, supported by forecasts from Standard Chartered, Robert Kiyosaki, and other industry experts.
In conclusion, the distribution of Mt. Gox’s Bitcoin and Bitcoin Cash is expected to have a minimal and short-term impact on BTC prices, with the broader market outlook remaining optimistic.
