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Earlier this week, the U.S. Fed cut interest rates by 25 basis points and signaled an additional 50 basis points of easing expected by year-end.
Bhutan Still Holds $1.1 Billion In Reserves
According to data from blockchain tracking platform Lookonchain, the Bhutan government-labelled wallet transferred 913 BTC, worth roughly $107 million, to two new crypto wallets.
The tiny Himalayan kingdom still holds 9,652 Bitcoin worth over $1.1 billion in reserves, even after this round of transfer, making it one of the largest sovereign holders of digital assets.
Bhutan’s BTC holdings come from its state-backed mining operations, and officials tend to liquidate holdings whenever prices surge.
 
Wednesday’s movement was the first activity in a month from the original wallet, which previously transferred $92 million worth of Bitcoin on Aug. 18, Arkham data shows.
It remains unclear whether the fresh transaction is an indication that Bhutan is preparing to sell a portion of its stake. If the government offloads its entire stash, it could add over $1 billion of selling pressure to the market.
Bhutan’s transfer came as other huge crypto holders moved their coins after the Fed slashed borrowing costs. As ZyCrypto reported on Wednesday, an ancient Bitcoin whale awakened and transferred $116 million worth of Bitcoin, which he initially purchased for just $847,000 in January 2014.
Bhutan’s Relationship With Crypto
Bhutan’s balance makes it the fifth-biggest known nation-state holder of the premier cryptocurrency, behind the United States (198,021 BTC), China (190,000 BTC), the United Kingdom (61,245 BTC), and Ukraine (46,351 BTC), according to Bitcoin Treasuries data.
But while many countries tend to acquire their Bitcoin via criminal seizures, Bhutan has built up its reserves through Druk Holding & Investments (DHI), the country’s sovereign wealth fund, which started mining Bitcoin by using the country’s abundant hydroelectric power.
In May, Bhutan teamed up with Binance to implement crypto payments to boost its tourism industry. However, the country has faced barriers to adoption, including unstable internet connections.
Its latest transfers also come amid speculation that other nation-states have also begun acquiring the asset to front-run U.S. President-elect Donald Trump’s commitment to build a national Bitcoin stockpile.