This week, the Royal Government of Bhutan moved over $100 million in Bitcoin, raising worries about possible market sell pressure, coinciding with the US Federal Reserve’s first interest rate cut of 2025.
A wallet associated with the Bhutan government transferred 913 Bitcoin (BTC), valued at approximately $107 million, into two newly established cryptocurrency wallets on Thursday.
The original wallet retains 9,652 Bitcoin worth more than $1.1 billion, according to data from the blockchain platform Lookonchain.
These transfers may suggest that Bhutan is considering selling a portion of its assets. Should the government decide to liquidate its entire reserve, it could inject over $1 billion in supply into the market.
Related: Report: Standard Chartered venture arm plans to raise $250M for digital asset fund
The recent activity marked the first from the wallet in a month, following a transaction of $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 taken steps to embrace cryptocurrency, including initiatives in hydro-powered Bitcoin mining and establishing a crypto reserve.
In September 2024, Arkham highlighted the initial Bitcoin address of Bhutan’s investment arm, Druk Holding and Investments, which managed roughly $780 million in crypto, illustrating the advantages of cryptocurrency adoption for developing nations.
Related: ‘Diamond hand’ investor turns $1K into $1M as BNB surpasses $1,000
Whales stir as Fed cuts rates
The Bitcoin transfers from Bhutan occurred alongside moves by other large holders in anticipation of potential market volatility.
On Wednesday, an unknown whale reactivated after 12 years of inactivity, transferring $116 million worth of Bitcoin that was initially purchased for just $847 per token, amounting to around $847,000 at the time.
This transfer took place shortly before Wednesday’s crucial Federal Open Market Committee (FOMC) meeting, which announced the first US interest rate cut of the year.
While Bitcoin initially surged to $117,000 after the interest rate cut was revealed, the “median FOMC projection of only 50 basis points in total cuts this year tempers the optimism,” causing potential short-term volatility risks, according to Ryan Lee, chief analyst at Bitget exchange, who informed Cointelegraph:
“Historically, crypto has dipped 5–8% following rate cuts before resuming its upward trend, indicating a possible ‘sell the news’ scenario in the upcoming days.”
“In the short term, Ethereum and Solana may outperform due to ETF-driven inflows and network enhancements, while Bitcoin may consolidate before aiming for $123,000 to $150,000 if subsequent cuts materialize,” the analyst commented.
Magazine: Bitcoin is ‘funny internet money’ during a crisis: Tezos co-founder
