With Bitcoin on an upward trajectory, Bhutan has made headlines by selling off $33 million worth of BTC and suddenly there are new questions surrounding the market.
The move comes just as Bitcoin touched a new all-time high above $93,000, leaving many to wonder: Is there a correction on the horizon?
The Royal Government of Bhutan has been mining Bitcoin since 2019 when the price was as little as $5,000 per coin. Fast forward to today, and Bhutan has accumulated an actual digital store of value over $1.1 billion today.
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On November 14, the Royal Government of Bhutan deposited 367 BTC on Binance valued at $33 million. This move comes two weeks after they sold $66 million worth of BTC when the price went past $70,000.
According to Arkham Intelligence, the government’s decision to move coins to Binance for sale is part of a larger strategy. It’s clear that Bhutan is locking in profits as Bitcoin soars, but the big question is: why now?
The answer may well be in the phenomenal growth of Bitcoin. BTC has increased for the last one month to around $93,000, a rise of nearly 50%.
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Considering the fact that the value of most cryptocurrencies is unpredictable now it comes as no shocker that Bhutan is liquidating some of its holdings.
However while Bhutan is selling, it’s not completely out of the picture. The country still possesses more than 12,000 BTC and keeps its position as one of the largest sovereign holders of Bitcoin.
The government’s slow steps of selling a small portion of the stash while retaining the bulk signify an effort of locking profits without fully letting go.
Is Bitcoin Due for a Pullback?
Quite a number of experts are warning that it is only a matter of time before an adjustment is made following hiking of Bitcoin’s value.
Ali Martinez, a crypto analyst, also highlighted the TD Sequential indicator, signaling that a retracement could be in the offing soon.
But while some are pulling back, others are still all-in. According to data from Santiment, Bitcoin whales have accumulated over 100,000 BTC in just the past week.
Bhutan’s recent Bitcoin sales also shine a light on a broader trend: governments and large institutions are becoming more involved in the crypto market.
The United States, for instance, has been the largest holder of Bitcoin among governments, thanks to seizures.
But with pro-crypto figures like Donald Trump eyeing a Strategic Bitcoin Reserve, Bhutan’s methodical approach could be a glimpse into the future of government-backed Bitcoin accumulation.
What’s Next?
With so much riding on Bitcoin’s next move, the question is: will it continue its meteoric rise or face a significant pullback?
Analysts remain divided. While some believe that Bitcoin could hit $100,000 by the end of the year, others are preparing for a correction. As the market fluctuates, Bhutan’s strategic sales could be just the tip of the iceberg for what’s to come.
For now, one thing is clear: Bitcoin’s volatility is as high as ever. As governments and institutional players like Bhutan continue to make moves, all eyes will remain on the flagship cryptocurrency, waiting to see which direction it takes next.
At the time of reporting, Arkham Intelligence reports that Bhutan currently holds approximately $1.03 billion worth of Bitcoin, with a total of 12,206 BTC. In addition, the country has around $2 million in Ether (ETH) and other cryptocurrencies.
