According to Arkham’s on-chain analysis, the Royal Government of Bhutan sent 533 Bitcoin [BTC]worth $34.5 million, to Binance [BNB] on June 17.
The largest individual transfer was for 227,194 BTC ($14.7 million), while another moved 48,228 BTC, worth $3.1 million. The same deposit address was also used for a number of smaller transactions, from fractions of a Bitcoin to just over two BTC.
Nature of transfer and total Bitcoin holdings
This indicates that several batches of transfers were made from a wallet identified as belonging to Druk Holding & Investments, Bhutan’s state investment arm.
Additionally, in May, Bhutan sent 90 Bitcoin, worth $7 million, to a SegWit address, as previously reported by AMBCrypto.
With all these transfers, Bhutan still has 1,749.96 BTC in its Bitcoin balance. This is about 11,250 BTC less than the peak of 13,000 BTC in October 2024. In total, the government wallet is worth $113.7 million, including $1,820 worth of 1,034 ETH.
What does this transfer mean for the market?
Transfers from government to exchanges could raise concerns about short-term price pressure and increased supply. But compared to Bitcoin’s daily trading volume, Bhutan’s 533 BTC movement is relatively small, limiting its immediate impact.
Rather than decreasing confidence, these sales are often related to financial resource management or profit taking. Similar actions by Germany, the US government or wallets connected to Mount Gox have caused short-term volatility in the past.
Even at that time, the actual market impact was less significant than expected.
However, if Bhutan continues to cut back on its holdings, investors may begin to question Bhutan’s long-term commitment to Bitcoin as a strategic asset.
Bitcoin dynamics and Bhutan’s rankings
This comes as Bitcoin was trading at $64,228.89 after dropping 1.96% from the day before, and as the BTC ETF saw outflows of $82.2 million.
In an already weak market, Bitcoin sales in Bhutan have increased supply, which could increase short-term downward pressure.
While traders may view the timing as bearish, the impact is likely only temporary unless Bhutan or other major holders continue to sell aggressively.
Finally, according to data from Bitcoin Treasuries, Bhutan is the seventh largest nation-state to own Bitcoin, after the United States (328,372 BTC), China (190,000 BTC), the United Kingdom (61,245 BTC), Ukraine (46,351 BTC), El Salvador (7,649 BTC), and the United Arab Emirates (6,420 BTC).
Final summary
- Bhutan’s Bitcoin supply now contains 1,749.96 BTC, which is about 11,250 BTC less than the peak of 13,000 BTC in October 2024.
- As bearish Bitcoin sentiment and ETF face outflows, Bhutan’s sell-off could lead to short-term sell-off and FUD.