Bhutan’s Recent Bitcoin Transfer Raises Concerns Over Market Sell Pressure
This week, the Royal Government of Bhutan transferred over $100 million in Bitcoin, prompting worries about potential sell pressure in the market, especially as the US Federal Reserve executed its first interest rate cut of 2025.
Details of the Bitcoin Transfer
The government-identified wallet moved 913 Bitcoin (BTC), amounting to approximately $107 million, into two newly established cryptocurrency wallets on Thursday. The original wallet still retains 9,652 Bitcoin, which is valued at over $1.1 billion, as per data from the blockchain platform Lookonchain.
These transfers could signal that Bhutan is gearing up to sell a portion of its holdings. A complete liquidation could introduce more than $1 billion of Bitcoin into the market.
This marks the first activity from the wallet in a month, with the last movement recorded on August 18, involving $92 million worth of Bitcoin, according to data from Arkham.
Bhutan’s Cryptocurrency Initiatives
Under the leadership of King Jigme Khesar Namgyel Wangchuck, Bhutan has embraced cryptocurrency, initiating projects like hydro-powered Bitcoin mining and establishing a crypto reserve. In September 2024, Arkham identified Bhutan’s investment arm, Druk Holding and Investments, which held about $780 million in cryptocurrency, demonstrating the potential benefits of cryptocurrency for developing economies.
Market Reactions and Other Transfers
The timing of Bhutan’s transfers coincided with other significant movements in the market, including a notable transfer by an unknown whale after 12 years of inactivity, who moved $116 million worth of Bitcoin that was originally purchased for just $847 per token, which totaled roughly $847,000 back then.
This transfer took place just before the highly anticipated Federal Open Market Committee (FOMC) meeting on Wednesday that led to the year’s first interest rate cut announcement.
While Bitcoin initially surged past $117,000 following the interest rate cut news, Ryan Lee, chief analyst at Bitget exchange, indicated that the “median FOMC projection of just 50 bps in total cuts this year tempers the optimism,” thus introducing short-term volatility risks. He added, “In the near term, Ethereum and Solana may outperform on ETF-driven inflows and network catalysts, while Bitcoin consolidates before targeting $123,000 to $150,000 if subsequent cuts materialize.”
