Wallets belonging to the government of Bhutan have reportedly transferred out $22.4 million in Bitcoin (BTC) over the past week, triggering renewed sell-off concerns as the alpha cryptocurrency falls to $72,000.
Valuation of the Himalayan nation’s sovereign crypto portfolio, which also includes Ethereum (ETH) and Binance Coin (BNB), has dropped from a peak of $1.4 billion to about $412 million.
However, these outflows are a continuation of a pattern of periodic sales by the Royal Government of Bhutan observed over the past several years. A closer look at the transaction flow suggests the activity does not yet confirm outright selling.
Bhutan Gov-Linked Wallets Move $22.4M in Bitcoin, Sparking Liquidation Fears
Blockchain analytics firm Arkham Intelligence flagged two major outflows that came from Druk Holding Investment (DHI), the country’s sovereign investment arm. The first transfer of 100.82 BTC, worth $8.31 million, occurred five days earlier and was made directly to an address labeled as belonging to Singapore-based institutional market maker QCP Capital. Meanwhile, another 184 BTC ($14 million) was sent in a single transaction earlier today.
Both transactions were routed to intermediary addresses and appear to be internal reallocations or custodial movements, rather than direct deposits into spot exchange wallets typically associated with immediate selling. At the same time, the Bhutan-linked wallets moved $1.5 million in USDT to Binance and Kraken.
Further analysis noted that Bhutan usually sells its bitcoins in tranches of roughly $50 million. Historical data shows particularly heavy sales between mid-to-late September 2025, with multiple transactions surpassing $50 million each. The latest transfer of $22.4 million is smaller compared to past sales, suggesting either more measured liquidation or reduced holdings by the Monarchy.
Market makers such as QCP Capital enable large block trades without causing any major disruption. Unlike direct exchange deposits that may trigger sharper reactions, this allows sovereign wallets to exit their positions while minimizing price impact.
Bhutan’s Hydroelectric Bitcoin Mining Yields $765M, Holds 5,700 BTC
Bhutan began its bitcoin reserve strategy in 2019, with DHI launching a mining operation powered by the country’s abundant hydroelectric resources. Since then, the country has generated over $765 million in profits while incurring estimated energy costs of around $120 million. Hydropower helps keep costs low compared to competitors that rely heavily on fossil fuels.
The majority of its holdings were mined before the 2024 halving event, which reduced issuance from 6.25 BTC per block to 3.125 BTC per block mined. However, the country has since reduced production as mining costs roughly doubled. Its peak mining year was 2023, when it produced around 8,200 BTC, bringing its total holdings to over 13,000 BTC then.
Annual production estimates show 2,500 BTC mined in 2021, 1,800 BTC in 2022, 8,200 BTC in 2023, and 3,000 BTC in 2024.
Bhutan’s crypto portfolio remains heavily concentrated in bitcoin, with Arkham estimating that wallets linked to the Royal Government hold approximately 5,700 BTC, valued at around $417 million. No significant drawdown in total holdings has been recorded since the latest transfers, easing concerns about liquidation.
Bitcoin Drops 40% From October Peak, $74K Support Key to Reversal
The move is happening as BTC has fallen roughly 40% from its October peak of $126,000, speculating a repeat of its historical four-year cycle downturns.
In a recent investor note, K33 Research Head Vetle Lunde acknowledged the similarities to past deep sell-offs, such as those in 2018 and 2022. However, he stressed that the current market environment structurally differs from previous ones.
Increased institutional adoption, inflows into regulated crypto products, and an easing Fed interest rate environment are providing stronger tailwinds compared to prior cycles. The market has not experienced forced deleveraging events that exacerbated the 2022 unwind.
Lunde noted that market cycle psychology can be self-reinforcing, with long-term bitcoin holders trimming their positions and investors hesitant to contribute new capital, which increased selling pressure and created patterns reminiscent of past downturns.
However, market indicators hint at a potential market bottom. On Monday, BTC spot trading volume crossed $8 billion, while the derivatives market experienced extreme negative open interest and funding rates. These are conditions that historically precede trend reversals. Bitcoin’s critical support has been identified around $74,000, with a potential move toward $69,000 or the 200-week moving average near $58,000 if it fails to hold that mark.
At the time of writing, Bitcoin (BTC) is trading at $70,541 – down 7.71% in 24 hours.
