In a significant move this week, the Royal Government of Bhutan transferred more than $100 million in Bitcoin, stirring concerns about potential sell pressure in the cryptocurrency market. This action coincided with the US Federal Reserve’s announcement of the first interest rate cut of 2025, raising eyebrows among crypto analysts.
On Thursday, Bhutan’s government-affiliated wallet shifted 913 Bitcoin, equating to approximately $107 million, into two newly created wallets. Notably, the original wallet still retains a substantial amount, holding 9,652 Bitcoin valued at over $1.1 billion, as per data from Lookonchain. Speculation is rife that these transfers could indicate Bhutan’s intent to sell a part of its extensive cryptocurrency holdings. Should the government decide to liquidate its entire Bitcoin stash, it could potentially add over $1 billion to the market’s supply.
This transfer marked the first activity from Bhutan’s crypto wallet in a month, with the previous notable movement occurring on August 18, when $92 million worth of Bitcoin was shifted, according to Arkham data. Bhutan’s adoption of cryptocurrency has been largely supported under the reign of King Jigme Khesar Namgyel Wangchuck, who has overseen initiatives including hydro-powered Bitcoin mining and the establishment of a crypto reserve.
In September 2024, Arkham had identified the Bitcoin address of Bhutan’s investment arm, Druk Holding and Investments, which was reported to hold around $780 million in cryptocurrency. This highlights the advantages of cryptocurrency adoption for developing nations.
The timing of Bhutan’s transfers aligns with similar actions from other large cryptocurrency holders who seem to be maneuvering ahead of potential market volatility. An unknown whale made headlines by transferring $116 million worth of Bitcoin after 12 years of inactivity, a sum initially acquired at approximately $847 per token, which translates to around $847,000 at the time of purchase. This transfer occurred just prior to the much-anticipated Federal Open Market Committee (FOMC) meeting that revealed the Federal Reserve’s latest interest rate decision.
As Bitcoin initially surged to over $117,000 following the rate cut announcement, cautious sentiments crept in. Analysts, including Ryan Lee from Bitget, cautioned that the “median FOMC projection of just 50 bps in total cuts this year tempers the optimism.” Historically, cryptocurrencies have exhibited a tendency to dip by 5–8% following rate cuts before resuming their upward trajectory, suggesting a potential “sell the news” trend in the upcoming days.
Looking ahead, there are expectations that other platforms such as Ethereum and Solana may outperform Bitcoin in the near term, driven by ETF inflows and essential network developments. However, Bitcoin consolidation is projected before it aims for the next target price brackets between $123,000 and $150,000, contingent on further rate cuts materializing.
