The Bhutanese government has started shifting part of its substantial Bitcoin holdings to Binance, following a surge in Bitcoin’s value beyond the $70,000 mark. According to Arkham Intelligence data, Bhutan transferred over $66.5 million worth of Bitcoin in two transactions on October 29, signaling an intent to sell on the world’s largest cryptocurrency exchange.
The government wallet initiated sales shortly after Bitcoin surpassed $70,000 for the first time since June, a move that could impact Bitcoin’s volatility as large holders, or “whales,” take profits at key levels.
$886 Million in Reserves Could Fuel Further Sales
With approximately $886 million in Bitcoin reserves remaining, Bhutan’s holdings are significant enough to create further selling pressure. For over five years, the Bhutanese government has been quietly mining and accumulating Bitcoin, positioning it as a central economic component.
Bitcoin Mining Boosts Public Salaries in Bhutan
Bitcoin has also proven profitable for Bhutan’s public sector. Revenue generated by Druk Holding and Investments, the country’s sovereign wealth fund, funded a 50% pay increase for Bhutanese public servants in 2023. Bhutan’s Bitcoin assets now account for 26.9% of the nation’s GDP, according to the World Bank, highlighting the cryptocurrency’s importance within its economy.
US Elections, China’s Debt Policy Drive Bitcoin Rally
The recent Bitcoin rally has been influenced by broader macroeconomic factors, including China’s $1.4 trillion debt plan and the upcoming US presidential election. Analysts from Bitfinex point to China’s potential economic stimulus as a demand driver, similar to liquidity infusions seen during the 2020 US COVID-19 relief efforts, which spurred Bitcoin’s significant rally. Although short-term price gains may be limited, such liquidity injections may fuel long-term buying as investors seek hedges against inflation and currency risks.
With Bitcoin remaining a pivotal asset for Bhutan, the country’s ongoing moves could continue to impact the cryptocurrency’s price in the coming months.
