Sovereign Selling Intensifies? Bhutan Transfers 76 Million USD in Bitcoin, Continued Position Reduction Weighs on Market Sentiment

Gate News reports that on March 19, Bhutan once again conducted a large-scale Bitcoin transfer. On-chain data shows that wallets managed by the national investment agency Druk Holding and Investments (DHI) transferred out over 973 Bitcoins in the past 24 hours, worth approximately $72.3 million. This move continues the country’s trend of gradually reducing its Bitcoin holdings since late 2024.

Previously, on March 10, DHI also transferred about 175 Bitcoins, valued at around $1.18 million. On-chain analysis platform Arkham Intelligence noted that Bhutan typically sells Bitcoin in batches worth $5 million to $10 million, but recent transactions have significantly increased in size, indicating a change in their fund allocation pace.

After this round of transfers, Bhutan’s holdings have decreased to about 4,400 Bitcoins, roughly $320 million at current market prices. Compared to the peak of approximately 13,295 Bitcoins in October 2024, the overall holdings have shrunk considerably. As a result, the market is beginning to reassess the impact of sovereign holders on Bitcoin supply and demand dynamics.

Strategically, Bhutan has previously used hydroelectric power to drive mining operations, incorporated Bitcoin into its national reserves, and used it to support economic development and projects like “Mindful Cities.” However, on-chain data over the past year shows no large-scale capital inflows, leading some market participants to speculate that their mining expansion may have slowed, though this has not been confirmed.

It is noteworthy that this transfer occurred as Bitcoin’s price fell below $71,000. Due to the US inflation data exceeding expectations, risk aversion increased, and liquidity tightened. In this context, continued selling by sovereign entities is seen as a potential supply pressure, which could amplify market volatility in the short term.

Currently, Bitcoin is in a key range of consolidation. Large on-chain transfers combined with macro factors keep market liquidity and selling pressure highly sensitive. The future trend will depend on the movements of sovereign funds and the recovery of demand.