Bitcoin Price Prediction: Will Mt. Gox Repayments Cause a Market Crash? ChatGPT-4o Weighs In

The repayment of Mt. Gox creditors has ranked among the notable events impacting the crypto sector in recent weeks, given its potential to influence market

The repayment of Mt. Gox creditors has been a key development in the crypto sector, with several community users reporting that they had received emails from the Kraken Exchange.

The emails confirmed the receipt of creditor funds (BTC and BCH) from the Mt Gox trustee. Kraken stated that it will take 7-14 days for the funds to be deposited into the user's account.

The confirmation of the Mt. Gox repayments prompted speculation about its impact on Bitcoin's price in the short term. In this regard, Finbold consulted OpenAI's latest artificial intelligence (AI) tool, ChatGPT-4o, to determine how Bitcoin's price will likely react amid the repayments.

According to the AI tool, the fear of a massive sell-off by Mt. Gox creditors has already caused some price volatility. It noted that Bitcoin dropped below $60,000 following the news, reflecting concerns about an influx of Bitcoin into the market.

However, the AI tool highlighted that estimates suggest not all the released Bitcoin will be sold immediately. Many Mt. Gox creditors might be long-term holders and may choose to retain their Bitcoin rather than sell it at once.

Therefore, with only a fraction of the Mt. Gox BTC expected to hit the market immediately, the selling pressure might be less severe than initially feared. This could lead to short-term volatility but may not cause a significant long-term drop in price.

At the same time, ChatGPT-4o noted that the cryptocurrency market has matured since 2014, and it’s now more capable of absorbing large inflows without as much volatility as in the past. Additionally, it suggested that technical analysis points to strong support around the 200-day moving average, which could help stabilize prices.

Given these factors, the AI platform suggested that while there might be some short-term volatility and potential dips in price due to the Mt. Gox repayments, the overall impact might not be as severe as some fear.

Bitcoin price prediction

By August 1, ChatGPT noted that Bitcoin could potentially stabilize and trade around or slightly below the current level, barring any additional market shocks or significant sell-offs by creditors.

Therefore, the AI tool predicted that a speculative price range for Bitcoin could be between $58,000 and $65,000 due to the factors surrounding the Mt. Gox payment. For August 1, the AI tool predicted that the leading cryptocurrency might trade in the range of $61,000 to $63,000.

In this context, if the prediction comes to pass, Bitcoin will likely still be trading in a range considered crucial to the next all-time high. Indeed, part of the market consensus maintains that Bitcoin needs to trade above $60,000 to validate any bullish sentiments.

In the meantime, Bitcoin has reclaimed the $64,000 mark, with eyes on $65,000. By press time, BTC was valued at $64,013, with daily gains of over 2%.

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