The Mt. Gox Rehabilitation Trustee has recently transferred close to $9.63 billion worth of Bitcoin and Bitcoin Cash to new wallets, sparking concerns and questions about the potential impact on the market and the strategies of creditors. However, experts have reassured investors that this will not cause a significant drop in BTC prices. Several factors, including a bull market, potential Federal Reserve rate cuts, and better reinvestment opportunities, are expected to deter creditors from selling their BTC holdings immediately.

No Major Impact from Mt. Gox Bitcoin and Bitcoin Cash Distribution

Mt. Gox, the troubled crypto exchange, is nearing the point of compensating its creditors by October this year. In preparation, the trustee transferred $9.63 billion in Bitcoin and Bitcoin Cash to wallets, marking a step towards repaying creditors after a decade-long wait.

Following this move, BTC prices dipped as Mt. Gox’s Japanese trustee began relocating the cryptocurrency to new wallets. Nobuaki Kobayashi, the repayment trustee, mentioned plans to start distributing Bitcoin and Bitcoin Cash to creditors soon.

Prominent creditors and seasoned market players do not foresee a substantial or lasting negative impact on Bitcoin prices. Many creditors plan to retain the coins or sell them slowly as BTC prices continue to rise. Additionally, creditors are hopeful that spot Bitcoin ETFs will boost profits from their newly acquired coins.

"It would be odd to sell at the start of a bull market," said Adam Back, CEO of Blockstream Corp. and a creditor who intends to keep any Bitcoin distributions. "After waiting ten years, why not wait another year or so? Some may need liquidity, but I believe that's a minority, as many either moved on or wrote it off as a loss years ago."

Expected Outcome of the Mt. Gox Bitcoin Distribution

Other large creditors, such as Off the Chain Capital, plan to sell their bitcoins but only after finding better investment opportunities. Most believe it is wiser to hold onto Bitcoin as a long-term asset.

The trustee is set to distribute nearly 95,000 Bitcoin and a similar amount of Bitcoin Cash this year from a total of over 140,000 Bitcoin and an equal amount of Bitcoin Cash. Therefore, about 75% of these holdings are expected to be distributed to creditors this year.

Scale of Impact from Mt. Gox Payout

Bitcoin is predicted to reach $100,000 this cycle, according to forecasts by Standard Chartered, Robert Kiyosaki, and other notable analysts and crypto industry leaders.

BTC price saw a 12% increase this month, with a year-to-date rise of 52%. The 24-hour low and high are $66,633 and $69,500, respectively. Additionally, trading volume has surged by 12% in the past 24 hours, indicating growing interest among traders.

Legendary trader Peter Brandt has predicted a possible formation of a cup-and-handle pattern in BTC prices, with the handle forming now as BTC prices dip to a low of $66,670.

In conclusion, despite the significant movement of funds by the Mt. Gox trustee, the anticipated payout is unlikely to cause a major downturn in Bitcoin prices. The majority of creditors are expected to hold onto their assets, encouraged by the current market conditions and future investment prospects.