Bhutan’s government has transferred 533 Bitcoin, valued at about $34.5 million, to a wallet linked to a major crypto trading platform, according to on-chain data from Arkham. The move reduced the country’s publicly traceable holdings to 1,749.96 Bitcoin, now worth roughly $113.7 million, down sharply from a peak of around 13,000 Bitcoin in October 2024.
The transactions were traced to a wallet associated with Druk Holding & Investments, the state’s commercial investment arm, and were executed in several batches. The largest transfer involved 227.194 Bitcoin worth about $14.7 million, followed by 48.228 Bitcoin valued near $3.1 million, alongside smaller amounts.
Ongoing selling raises liquidation questions
Arkham noted the transfer on X, raising the possibility that the assets were moved for sale. The latest transaction continues a broader pattern of outflows that began in early 2026, with total tracked movements exceeding $230 million.
In May alone, Bhutan sent around 100.44 Bitcoin, valued at $8.2 million, to an unidentified destination. The government has not issued any public explanation for the recent transfers.
Market observers say moving funds to a trading platform typically signals an intent to liquidate. If confirmed, the steady flow of sales would represent a shift away from holding mined assets toward realizing profits from Bhutan’s hydroelectric-powered mining operations.
Holdings shrink as global ranking remains
As of June, Bhutan’s Bitcoin reserves have declined by about 11,250 Bitcoin compared with 2024 levels. The country also holds a small amount of Ethereum, around 1.034 Ether valued near $1,820.
Despite the reduction, Bhutan remains among the largest national holders of Bitcoin, ranking seventh globally behind the United States, China, the United Kingdom, Ukraine, El Salvador, and the United Arab Emirates.
Unlike many governments whose crypto holdings stem from seizures, Bhutan’s reserves were built through state-backed mining powered by hydroelectric energy.
Market sentiment pressured by supply and macro signals
Bitcoin traded near $65,221, down about 1.2% over the past 24 hours, as broader market sentiment remained cautious. The additional supply from Bhutan’s transfers comes at a time when the market is already facing pressure from institutional outflows.
U.S. spot Bitcoin ETFs recorded net outflows of approximately $319.3 million during the week of June 8 to 12. This followed a prolonged 13-day streak of withdrawals totaling more than $3.4 billion, reflecting weakening demand among traders.
Attention is also focused on the Federal Open Market Committee decision, with policymakers weighing inflation that rose 4.2% year-over-year in May. Expectations of a continued restrictive stance have added to uncertainty in risk assets, including cryptocurrencies.
Outlook points to continued volatility
The combination of sovereign selling, ETF outflows, and macroeconomic pressure suggests the potential for continued volatility in the near term. Market behavior indicates a late-stage capitulation phase, though the sharp panic selling typically associated with cycle bottoms has yet to appear.
Analysts are watching for signs of seller exhaustion as a signal that a more stable support level may form, with the $60,000 range emerging as a key area of interest.
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