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The Bhutan government Bitcoin holdings made waves in the crypto market this week after the Himalayan kingdom transferred more than $100 million worth of BTC into new wallets. Blockchain data showed that on Thursday, Bhutan’s government-labeled address moved 913 Bitcoin (BTC) worth about $107 million into two newly created wallets.
According to Lookonchain, the original wallet still holds more than 9,600 BTC, valued at approximately $1.1 billion. While the move does not confirm an immediate liquidation, it raised fresh speculation that Bhutan may be preparing to sell part of its digital reserve.
“If the Bhutan government liquidated its entire stash, it could add more than $1 billion worth of supply to the market,” said a note from Arkham Intelligence, which tracks blockchain flows.
The transfer marked the first activity in a month from the government-linked address, which previously shifted $92 million worth of Bitcoin on August 18.
The Bhutan government Bitcoin holdings have grown steadily under King Jigme Khesar Namgyel Wangchuck, who has supported crypto adoption as part of a wider national development strategy. Initiatives include hydro-powered Bitcoin mining and the creation of a crypto reserve through its sovereign investment arm, Druk Holding and Investments (DHI).
In September 2024, Arkham identified one of DHI’s wallets holding about $780 million in crypto assets, underscoring Bhutan’s unusual position as one of the few developing economies actively leveraging blockchain infrastructure for state-led investment.
“Bhutan views Bitcoin as both a store of value and a strategic asset tied to its renewable energy advantage,” — Sonam Tshering, former DHI advisor, in an interview with Reuters earlier this year.
For policymakers, the Bhutan government Bitcoin holdings highlight a unique experiment: using digital assets not only as a reserve but also as a tool to diversify national income away from hydropower and tourism.
The transfers coincided with other major Bitcoin whale movements, adding to volatility around the U.S. Federal Reserve’s monetary decision. On Wednesday, an unidentified long-term holder moved 1,000 BTC worth $116 million after 12 years of dormancy.
The timing aligned with the Federal Open Market Committee’s (FOMC) announcement of its first interest rate cut of 2025. Bitcoin initially surged above $117,000 on the news before retracing.
“Historically, crypto has dipped 5–8% following rate cuts before resuming its upward path, suggesting a potential ‘sell the news’ phase,” — Ryan Lee, Chief Analyst, Bitget Exchange, told Cointelegraph.
Lee added that while Bitcoin may consolidate, Ethereum and Solana could outperform in the near term due to ETF-driven inflows and network catalysts.
For investors, the Bhutan government Bitcoin holdings add another variable to an already volatile macro environment. If liquidated, the kingdom’s billion-dollar reserve could influence short-term liquidity and sentiment.
While Bhutan has not confirmed plans to sell, its large on-chain movements have historically preceded either internal rebalancing or partial divestments. Analysts warn that even the perception of liquidation could add sell pressure to Bitcoin markets.
“The symbolism of a sovereign nation potentially offloading BTC can shake confidence, even if volumes are manageable,” — David Lawant, Head of Research at FalconX, in remarks to Bloomberg.
Still, some view the Bhutan government Bitcoin holdings as proof that digital assets are becoming an integral part of national financial strategies, joining gold, foreign reserves, and sovereign wealth funds.
For crypto investors, Bhutan’s latest moves underscore the importance of monitoring sovereign and institutional activity alongside macroeconomic shifts like U.S. interest rate policy. As the market digests both whale transfers and Fed cuts, Bitcoin’s path toward the $123,000–$150,000 range projected by analysts could hinge on whether Bhutan decides to hold or sell.
At the same time, some analysts caution that overemphasis on Bhutan’s transactions could obscure larger market drivers. Global liquidity conditions, ETF inflows, and regulatory decisions in the U.S. and Europe continue to play a heavier role in shaping Bitcoin’s price trajectory.
