This week, the Royal Government of Bhutan transferred over $100 million in Bitcoin, raising concerns about potential market sell pressure as the US Federal Reserve announced its first interest rate cut of 2025.
A wallet associated with the Bhutan government moved 913 Bitcoin (BTC), valued at roughly $107 million, into two newly established cryptocurrency wallets on Thursday.
The original wallet still contains 9,652 Bitcoin worth more than $1.1 billion, according to data from blockchain platform Lookonchain.
These transfers may suggest Bhutan is considering the sale of some of its assets. If the government were to liquidate its entire stash, it could flood the market with over $1 billion of new supply.
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This marked the first action from the wallet in a month, with the last transfer being $92 million in Bitcoin on August 18, according to Arkham data.
Under the leadership of King Jigme Khesar Namgyel Wangchuck, Bhutan has embraced cryptocurrency, implementing initiatives such as hydro-powered Bitcoin mining and a cryptocurrency reserve.
In September 2024, Arkham identified Bhutan’s investment arm, Druk Holding and Investments, which boasted about $780 million in cryptocurrency, demonstrating the advantages of crypto adoption for developing economies.
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Whales stir as Fed cuts rates
The transactions from Bhutan coincided with movements from other significant holders ahead of anticipated volatility.
On Wednesday, an unknown whale, after 12 years of inactivity, transferred $116 million worth of Bitcoin, which was originally purchased for just $847 per token, totaling about $847,000 at that time.
This transfer happened just before Wednesday’s much-anticipated Federal Open Market Committee (FOMC) meeting, which announced the first interest rate cut in the US this year.
While Bitcoin initially surged past $117,000 following the interest rate cut announcement, the “median FOMC projection of just 50 bps in total cuts this year tempers the optimism,” introducing risks of short-term volatility, Ryan Lee, chief analyst at Bitget exchange, noted to Cointelegraph, adding:
“Historically, crypto has dipped 5–8% following rate cuts before resuming its upward trend, suggesting a potential ‘sell the news’ phase in the coming days.”
“In the short term, Ethereum and Solana may outperform due to ETF-driven inflows and network catalysts, while Bitcoin consolidates before aiming for $123,000 to $150,000 if further cuts are implemented,” the analyst stated.
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