Analysts warn of short-term volatility as large holders reposition amid policy shift
The Royal Government of Bhutan transferred more than $107 million worth of Bitcoin (BTC) this week, sparking speculation about potential market sell pressure just as the US Federal Reserve cut interest rates for the first time in 2025.
Blockchain data shows the government-linked wallet moved 913 BTC, valued at approximately $115,960 per coin, into two newly created wallets on Thursday. The original address still holds around 9,652 BTC, worth more than $1.1 billion, according to Lookonchain.
Analysts caution that such moves may precede liquidation. “If Bhutan were to offload its full holdings, it would inject over $1 billion of supply into the market — enough to trigger a significant price recalibration,” one market strategist told reporters.
Bhutan’s growing crypto footprint
Bhutan, under King Jigme Khesar Namgyel Wangchuck, has quietly embraced digital assets. The country has experimented with hydro-powered Bitcoin mining and built a sovereign crypto reserve through its investment arm, Druk Holding and Investments (DHI).
Arkham Intelligence revealed in 2024 that Bhutan’s wallets collectively held $780 million in crypto, underscoring how digital assets have become a strategic financial tool for the Himalayan kingdom.
Whales awaken as Fed cuts rates
Bhutan’s transfers coincided with other whale activity in the market. On Wednesday, a dormant Bitcoin address moved $116 million worth of BTC after 12 years, coins originally bought at just $847 per token.
The timing came just before the Federal Open Market Committee (FOMC) delivered a 25-basis-point rate cut, the first easing step in two years.
While Bitcoin briefly surged past $117,000, analysts expect volatility in the short term. Ryan Lee, chief analyst at Bitget exchange, noted:
“Historically, crypto dips 5–8% after rate cuts before resuming its upward trend, suggesting a possible ‘sell the news’ phase.”
Lee added that while Ethereum and Solana could benefit from ETF-driven inflows, Bitcoin may consolidate before making a push toward $123,000–$150,000 if further cuts materialize.
With whales on the move and central banks shifting policy, investors face a period of heightened uncertainty — and opportunity — in the months ahead.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.