This week, the Royal Government of Bhutan transferred over $100 million in Bitcoin, raising apprehensions regarding possible sell pressure in the market as the US Federal Reserve announced its first interest rate cut of 2025.
The wallet associated with the Bhutanese government moved 913 Bitcoin (BTC), valued at approximately $107 million, to two newly established cryptocurrency wallets on Thursday.
The original wallet continues to hold 9,652 Bitcoin, valued at more than $1.1 billion, as per blockchain data from Lookonchain.
The transactions might suggest that Bhutan is gearing up to sell a segment of its holdings. If the government were to liquidate its entire reserve, it could inject over $1 billion into the market.
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This marked the first activity in a month from this wallet, which previously moved $92 million worth of Bitcoin on August 18, according to Arkham data.
Under the leadership of its current monarch, King Jigme Khesar Namgyel Wangchuck, Bhutan has embraced cryptocurrency, implementing initiatives like hydro-powered Bitcoin mining and establishing a crypto reserve.
In September 2024, Arkham identified the initial Bitcoin address of Bhutan’s investment arm, Druk Holding and Investments, which held approximately $780 million in cryptocurrency, highlighting the advantages of cryptocurrency adoption for developing nations.
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Whales stir as Fed cuts rates
The aforementioned transfers from Bhutan coincided with other significant holders moving coins in anticipation of potential market volatility.
On Wednesday, an unknown whale emerged from 12 years of inactivity to transfer Bitcoin worth $116 million, originally acquired for just $847 per token, totaling around $847,000 at the time.
This transfer took place just before the highly anticipated Federal Open Market Committee (FOMC) meeting, which announced the first US interest rate cut of the year.
Although Bitcoin initially surged to $117,000 following the interest rate cut announcement, the “median FOMC projection of only 50 bps in total cuts this year tempers the optimism,” introducing risks of short-term volatility, as Ryan Lee, chief analyst at Bitget exchange, shared with Cointelegraph:
“Historically, crypto has dipped 5–8% after rate cuts before resuming its upward trajectory, suggesting a potential ‘sell the news’ phase in the days to come.”
“In the near term, Ethereum and Solana may outperform driven by ETF-related inflows and network catalysts, while Bitcoin consolidates before targeting between $123,000 to $150,000 if subsequent cuts occur,” the analyst added.
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