Bitcoin transaction worth $59 million from Bhutan raises market concerns!
In recent developments, the Kingdom of Bhutan, known for its significant Bitcoin holdings, has been making strategic moves in the cryptocurrency market.
Bitcoin's recent push toward $117,700 is showing signs of waning bullish momentum, with the daily Relative Strength Index (RSI) at 53.2, placing it in neutral territory but hinting at mid-range consolidation. This comes as Bitcoin is trading around $116,500 at press time, down 0.85% in the last session.
The Royal Government of Bhutan has been active in the market, making a transfer of $59 million in Bitcoin to a new address linked to Binance. A small test transaction was conducted from this new address to a Binance deposit address, raising speculation about potential future moves.
However, these sales appear to be strategic profit-taking rather than a full exit from Bitcoin holdings. In July 2025, Bhutan sold about 512.84 Bitcoin worth approximately $59.47 million through transfers to the Binance exchange as Bitcoin prices climbed from $108,000 to over $122,000. Then, in early August 2025, the government moved another $60 million worth of Bitcoin to Cobo’s hot wallet, likely part of more sophisticated asset management rather than an outright sale to the market.
Despite these sales, Bhutan still holds a very large position, approximately 10,769 to 11,411 Bitcoin, valued at over $1.25 billion, maintaining one of the largest sovereign Bitcoin reserves relative to its GDP. This indicates they are not dumping their Bitcoin but are occasionally taking profits during price surges.
The market impact of Bhutan’s selling activity is somewhat uncertain but notable because they are a rare state holder of Bitcoin. Analysts warn repeated sales could add selling pressure, but Bhutan’s sales have been spaced with market timing, suggesting calculated moves rather than panic selling. Also, part of the Bitcoin moved to Cobo Wallet may not be sold immediately but rather managed under institutional custody, making tracking and immediate market impact less transparent.
If selling pressure intensifies, Bitcoin could retest support near $114,000. Momentum indicators, such as the RSI and MACD, are cooling, suggesting short-term downside risk for Bitcoin. The drop in funding rates is attributed to a wave of leveraged long positions being unwound, and the Bitcoin derivatives market is showing signs of stress due to a sharp drop in funding rates. The MACD remains bearish, with the signal line positioned above the MACD line, indicating potential short-term downside pressure.
There is speculation that Bhutan is preparing to liquidate part of its Bitcoin reserves, which has fueled market jitters. The impact of large-scale sovereign selling on crypto prices is being debated due to Bhutan's potential Bitcoin liquidation. Arkham Intelligence recently reported on the $59 million Bitcoin transfer from the Royal Government of Bhutan.
In summary, Bhutan is not dumping its Bitcoin but managing large holdings strategically, which influences Bitcoin markets through well-timed sales and custodial transfers. This strategic approach to Bitcoin management is a significant factor to consider in understanding the current market dynamics.
- The Kingdom of Bhutan, with its significant Bitcoin holdings, has transferred $59 million worth of Bitcoin to a new address linked to Binance, hinting at strategic moves in the cryptocurrency market.
- Despite selling $59.47 million worth of Bitcoin in July 2025, Bhutan still holds a large position, with approximately 10,769 to 11,411 Bitcoin, valued at over $1.25 billion.
- The market impact of Bhutan’s selling activity is uncertain, but repeated sales could add selling pressure, causing Bitcoin to retest support near $114,000.
- Bhutan's strategic approach to Bitcoin management involves well-timed sales and custodial transfers, such as moving another $60 million worth of Bitcoin to Cobo’s hot wallet in early August 2025.
- The crypto market is debating the potential impact of large-scale sovereign selling on crypto prices, with Bhutan's potential Bitcoin liquidation triggering speculation.
