As an analyst with over two decades of experience in the financial markets, I have witnessed numerous governments and institutions dabble in cryptocurrencies, and the recent move by the Royal Government of Bhutan to sell 406 Bitcoins is no exception. While this move might seem alarming at first glance, it’s essential to remember that the government still retains a significant portion of its Bitcoin holdings, making it one of the top four governmental holders worldwide.
As a crypto investor, I’ve noticed that the Royal Government of Bhutan has been selling off 406 Bitcoins from their treasury, totaling approximately $40 million, as Bitcoin prices strive to reach new all-time highs. Over the past two months, they’ve been gradually disposing of their stake at regular intervals, a move that appears to have been influenced by the significant surge in Bitcoin prices, particularly following Donald Trump’s election victory.
Bhutan Govt Offloads 406 Bitcoins from Holdings
According to information from Arkham Intelligence’s on-chain data, the government of Bhutan, specifically the Royal Government, sent 406 Bitcoins, equivalent to around $40 million, to QCPCapital. This transaction has sparked a lot of conversation, with many people guessing it could be a decision to sell off these Bitcoin holdings.
It’s revealed that the Bhutanese government currently owns approximately 11,791 Bitcoins, placing it fourth globally among governments holding Bitcoin. At present Bitcoin prices, this equates to roughly $1.164 billion in value. Interestingly, Bhutan is known as a favorable destination for Bitcoin miners, with the government amassing most of its Bitcoin through hydroelectric mining operations.
As an analyst, I’ve observed that following a surge in Bitcoin’s value around late October, the Royal Government of Bhutan has offloaded 1,696 Bitcoins, equivalent to approximately $139 million. These sales were executed primarily through Binance and QCP Capital, with an average price point of about $81,999 per Bitcoin.
Where Is BTC Price Heading Next?
The new development occurs when Bitcoin’s price is finding it tough to surpass the $100K mark due to sell-offs by long-term investors. At the time of writing, Bitcoin was being traded at a 1.6% decrease, with a value of $98,190 and a market capitalization of approximately $1,943 trillion.
Examining the open interest for December 27, 2024, a grand total of 139,960 Bitcoin options contracts are set to expire on that date, according to Deribit’s data. QCP proposes that if the spot prices surge, there might be a squeeze higher; however, they are not optimistic about this happening. The firm has noticed traders cashing out on their long BTC-100k-C positions, and some of them are moving these positions to March (approximately 130k-150k), which suggests a substantial amount of upside gamma supply in the market.
Despite Bitcoin’s current difficulty in surpassing the $100K mark in the near future, analysts remain optimistic about its value for 2025, with some predicting it could reach $200K by then. The increased inflows into Bitcoin ETFs and institutional purchases, such as those made by MicroStrategy, may contribute to further price increases. Additionally, rumors suggest that tech titans like Amazon and Microsoft are planning to add Bitcoin to their holdings in the coming year.
The crypto market enters a pivotal week as attention turns to the upcoming US Consumer Price Index (CPI) inflation figures. Additionally, investors will also closely watch the release of the US Producer Price Index (PPI) data.
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2024-12-09 15:24