BTCUSD on TradingView.com<\/a><\/figcaption><\/figure>\nAs of press time, the largest cryptocurrency on the market is trading at $67,900, representing a 1.3% price drop over the past 24 hours.\u00a0<\/span><\/p>\nFeatured image from Shutterstock, chart from TradingView.com <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"As the defunct cryptocurrency exchange Mt. Gox prepares to distribute around $9 billion worth of Bitcoin, some investors are worried about the potential impact on prices. However, industry experts and major creditors believe that any short-term volatility will be outweighed by BTC’s long-term bullish prospects.\u00a0 With the approval of US spot Bitcoin exchange-traded funds (ETFs), many market experts anticipate that the market will absorb the newly available tokens.\u00a0 Bitcoin Optimism Among Market Participants As reported by our sister website, Bitcoinist, Mt. Gox’s Japanese trustee, Nobuaki Kobayashi, recently announced plans to start distributing Bitcoin and Bitcoin Cash to creditors.\u00a0 The process is expected to commence shortly, with most claimants set to receive their tokens before the end of October. However, concerns have emerged regarding the impact of this large-scale distribution on Bitcoin’s price. According to Bloomberg, significant creditors and long-time market participants remain confident in Bitcoin’s resilience despite concerns. Many intend to retain the distributed coins, anticipating continued price appreciation.\u00a0 Related Reading: Ethereum Bloodbath: Over $55 Million In Longs Liquidated As Price Plummets Adam Back, CEO of blockchain technology company Blockstream and a creditor himself, emphasizes the \u201cillogicality\u201d of selling at the beginning of a potential bull market. Back suggests that waiting further, after a decade-long wait, could yield even greater returns.\u00a0 According to the firm’s CEO Brian Dixon, other creditors, such as Off the Chain Capital, plan to sell Bitcoin only when \u201cbetter investment opportunities arise,\u201d recognizing Bitcoin’s historical performance as the best-performing asset in recent years. Dixon further highlights the significant maturation of the Bitcoin market since Mt. Gox’s bankruptcy. He argues that the potential impact of the distribution, although substantial in volume, is unlikely to have a lasting effect on prices.\u00a0 Cosmo Jiang, a portfolio manager at Pantera Capital, notes that while the amount is significant, the distribution will occur over an extended period, making it less actionable regarding market impact. With around $26.6 billion in daily Bitcoin trading, the distributed tokens are expected to be absorbed without major disruption. BCH Sales In Mt. Gox Distribution? Creditors do not anticipate a simultaneous distribution of tokens to all claimants. Instead, they expect the trustee to distribute the coins in tranches, potentially prioritizing earlier-filed claims. This approach may mitigate any immediate market pressure.\u00a0 Moreover, Galaxy Research estimates that credit funds, holding approximately 20,000 BTC, are unlikely to engage in significant selling. Instead, they are expected to distribute the Bitcoin to their limited partners (LPs) in kind. While BTC is anticipated to weather the distribution without major consequences, Bitcoin Cash (BCH) may face more pressure due to its lower ideological commitment from holders.\u00a0 Alex Thorn, head of research at Galaxy, suggests that individual creditors owed the majority of tokens to be distributed this year, will likely be the primary source of sales, with some opting to sell their Bitcoin Cash. Related Reading: Near Protocol Breaks Out From Wedge Pattern: Why This Could Trigger A 37% Crash In summary, as Mt. Gox prepares to distribute billions of dollars worth of BTC, industry experts and major creditors remain optimistic, citing the maturity of the Bitcoin market, the potential for continued price appreciation, and the availability of newly approved ETFs.\u00a0 While short-term volatility is possible, most stakeholders are confident that Bitcoin’s long-term prospects will outweigh any immediate market impact.\u00a0 As of press time, the largest cryptocurrency on the market is trading at $67,900, representing a 1.3% price drop over the past 24 hours.\u00a0 Featured image from Shutterstock, chart from TradingView.com<\/p>\n","protected":false},"author":589,"featured_media":610859,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[428,10736,15751,485,532,9960,652,656,679,768,1119,1144,8390,78790,6664,14690,1558,54512,5582,91323,90990,86760],"class_list":["post-610858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-bitcoin-cash","tag-bitcoin-cash-bch","tag-bitcoin-chart","tag-bitcoin-etf","tag-bitcoin-etfs","tag-bitcoin-mt-gox","tag-bitcoin-news","tag-bitcoin-price","tag-bitcoin-trading","tag-btc","tag-btcusd","tag-btcusd-price","tag-btcusdt","tag-crypto","tag-crypto-news","tag-cryptocurrency","tag-defi","tag-mt-gox-bankruptcy","tag-mt-gox-coins","tag-mt-gox-news","tag-mt-gox-repayment"],"acf":[],"yoast_head":"\n
Market Analysis: How Will Mt. Gox's Bitcoin Distribution Affect Crypto Prices?<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n