The government of Bhutan recently moved a substantial amount of Bitcoin, valued at over $100 million, prompting speculation about its potential impact on the cryptocurrency market. This activity coincides with the US Federal Reserve’s initial reduction in interest rates for 2025.
Data indicates that a digital wallet associated with the Bhutanese government executed the transfer of 913 Bitcoin (BTC), estimated at $107 million, to two newly established digital wallets on Thursday.
According to data from Lookonchain, a blockchain analytics platform, the original wallet continues to hold a significant amount of Bitcoin, totaling 9,652, with a current value exceeding $1.1 billion. according
These transfers have led to speculation that Bhutan may be preparing to sell off a portion of its Bitcoin reserves. Should the government decide to liquidate its entire holdings, it could introduce over $1 billion worth of Bitcoin into the market.
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This recent activity follows a prior transaction from the same wallet, which occurred approximately a month prior, involving the movement of $92 million worth of Bitcoin on August 18th, according to data provided by Arkham.
Bhutan, under the leadership of King Jigme Khesar Namgyel Wangchuck, has been actively involved in cryptocurrency initiatives, including Bitcoin mining powered by hydroelectric energy and the establishment of a cryptocurrency reserve.
In September of 2024, Arkham identified the initial Bitcoin address associated with Druk Holding and Investments, Bhutan’s investment arm, revealing crypto assets valued at approximately $780 million. This underscores the potential advantages of cryptocurrency adoption for developing nations.
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Significant Bitcoin Transfers Occur Alongside Fed Rate Cut
These transactions from Bhutan coincide with movements by other large Bitcoin holders, raising concerns about potential market volatility.
On Wednesday, a major Bitcoin holder, dormant for 12 years, initiated a transfer of $116 million worth of Bitcoin, initially purchased for approximately $847 per token, totaling $847,000 at the time. transfer $116 million
This transfer took place shortly before the Federal Open Market Committee (FOMC) meeting on Wednesday, which resulted in the first interest rate decrease of the year in the United States.
While the price of Bitcoin momentarily surged above $117,000 following the interest rate announcement, Ryan Lee, chief analyst at Bitget exchange, cautioned that “the median FOMC projection of only 50 basis points in total cuts this year tempers the optimism,” potentially introducing short-term volatility. Lee stated to Cointelegraph:
“Historically, crypto has experienced a 5–8% dip following rate cuts before continuing its upward trajectory, which suggests a potential ‘sell the news’ phase in the coming days.”
“In the short term, Ethereum and Solana could outperform due to ETF-driven inflows and network developments, while Bitcoin consolidates before targeting $123,000 to $150,000 if further rate cuts materialize,” Lee added.
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