Mt Gox $10B Bitcoin Distribution Won't Affect BTC Price: Details

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Mt Gox $10B Bitcoin Distribution Won’t Affect BTC Price: Details – Crypto News

Published

1 year ago

May 31, 2024

Dripp

Mt. Gox Rehabilitation Trustee has recently moved nearly $9.63 billion in Bitcoin and Bitcoin Cash to new wallets, causing panic and raising questions about potential market effects and creditor strategies. However, experts turned down investors’ concerns about a major drawdown in BTC prices. Several factors such as bull market, Fed rate cuts, and availability of better options to reinvest and further increase their return on investments are likely to make creditors reluctant to sell their BTC holdings.

No Major Impact of Mt. Gox Bitcoin and Bitcoin Cash Payout

The beleaguered crypto exchange Mt. Gox moved closer to making payouts to creditors by October this year. The trustee moved $9.63 billion in Bitcoin and Bitcoin Cash to wallets in preparation for paying back creditors after the long 10 years.

BTC price fell after Mt. Gox’s Japanese trustee began moving crypto to new wallets. Mt. Gox repayment trustee Nobuaki Kobayashi said it plans to start distributing Bitcoin and Bitcoin Cash to creditors in “a while.”

Big creditors and long-time market participants don’t see a significant and lasting hit to Bitcoin price. Many plan to keep the coins or sell them gradually as BTC price continue to rally. Creditors are also counting on spot Bitcoin ETFs to increase profits from newly available coins.

“It would be a strange time to sell at the beginning of a bull market,” said Adam Back, chief executive officer of Blockstream Corp., and a creditor who plans to retain any distributions of Bitcoin. “Why not wait a year or so, given you already waited 10 years. Now some people may need liquidity, but I think that’s a minority of the funds, as people moved on, or philosophically wrote it off as a dead loss years ago.”

Other large creditors like Off the Chain Capital plan to sell their bitcoins but only after finding better investment opportunities. Most believe it is better to hold Bitcoin as a long-term store of value.

Trustee to payout almost 95,000 Bitcoin and a similar amount of Bitcoin Cash this year from more than 140,000 Bitcoin, and a similar amount of Bitcoin Cash. Thus, about 75% of that deposit is expected to be paid out this year to creditors.

Also Read: NYSE President Lauds Bitcoin ETFs and Liquidity It Brought to Markets

Scale of Impact from Mt. Gox Payout

Bitcoin is expected to hit $100K this cycle, as predicted by Standard Chartered, Robert Kiyosaki and other known analysts and crypto industry executives.

BTC price saw a 12% upside move this month, with a year-to-date rally of 52%. The 24-hour low and high are $66,633 and $69,500, respectively. Furthermore, the trading volume has increased by 12% in the last 24 hours, indicating interest among traders.

Legendary trader Peter Brandt predicted a likely formation of a cup-and-handle pattern formation in BTC price, with the handle pattern forming now as BTC price slides to a low of $66,670.

Also Read: Will Bitcoin, ETH, SOL, XRP, SHIB Prices Set to Rally in June as CPI & PCE Inflation Cools

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