Bitcoin Profit Taking Feared as Bhutan Makes Massive $66M Transfer

Bhutan’s government has just made a huge Bitcoin move, transferring 929 BTC worth over $66 million to Binance, a leading crypto exchange. Many in the crypto world see this move as possible profit-taking, especially since Bitcoin just reached $73,000, its highest since March. This raises questions: Could Bhutan’s transfer lead to a major sell-off? Will Bitcoin see a price dip soon?

Bhutan’s Big Bitcoin Transfer: Key Details

According to Arkham Intelligence, Bhutan transferred a total of 929 BTC, valued at $66.1 million, to a Binance deposit address. The transaction happened in two parts: an initial transfer of 100 BTC (worth $7.1 million) at 9:09 a.m. UTC, followed 45 minutes later by a larger 839 BTC transfer, valued at $59 million.

This is Bhutan’s first major Bitcoin transfer since July, when it moved 381 BTC to the exchange Kraken. Although Bhutan’s exact reasons for the transfer are unclear, large deposits to exchanges often suggest a potential sale. With Bitcoin trading around $71,200, the market is watching closely to see if this could lead to a sell-off.

Bhutan’s Bitcoin Holdings

However, Bhutan has a large Bitcoin reserve, managed by state-owned Druk Holdings, and this reserve is valued at around $887 million, or 12,456 BTC making Bhutan one of the top four countries with the largest Bitcoin reserves. 

The country’s Bitcoin assets represent a major part of its economy, almost a third of its GDP, and have been collected through mining operations done with Bitdeer Technologies. 

Bitdeer, Bhutan’s mining partner, has been expanding its facilities to support the country’s Bitcoin accumulation. With plans to further increase Bhutan’s mining capacity by 2025, this partnership is helping Bhutan establish a significant reserve of Bitcoin, which has become an important economic asset for the country.

Could Bhutan’s Move Affect Bitcoin’s Price?

The timing of Bhutan’s transfer is notable, as Bitcoin’s price nears its all-time high of $73,777. Currently, about 99.7% of Bitcoin’s supply is in profit, with around $1.5 billion in realized gains circulating. Bhutan’s move could contribute to increased market activity and potentially affect Bitcoin’s price in the short term.

Historically, large transfers to exchanges often indicate a sale, particularly when prices are at peak levels. While Bhutan’s intentions remain unclear, the crypto community will be watching closely.

Will this trigger a Bitcoin sell-off? Let us know your take.