The Royal Government of Bhutan has sold 406 Bitcoins worth $40 million over the past two months, capitalizing on the significant Bitcoin price rally following Donald Trump’s election victory. The sale comes as Bitcoin approaches new all-time highs.
406 Bitcoins Offloaded from Treasury Reserves
On-chain data from Arkham Intelligence reveals that the Bhutanese government transferred 406 BTC, valued at approximately $40 million, to QCPCapital. This transaction has sparked widespread speculation, with many interpreting it as a move to reduce reserves.
Despite the sale, Bhutan still holds 11,791 BTC in its treasury, worth around $1.164 billion at current prices. This makes Bhutan the fourth-largest government Bitcoin holder globally. The country has established itself as a hub for Bitcoin mining, acquiring a significant portion of its reserves through hydro-powered mining operations.
Since late October, amid rising Bitcoin prices, the Bhutanese government has sold a total of 1,696 BTC, valued at approximately $139 million, at an average price of $81,999. These transactions were primarily executed via Binance and QCP Capital.
Where Is Bitcoin’s Price Heading?
The Bhutanese government’s sales come at a time when Bitcoin struggles to break past the $100,000 psychological level. At the time of writing, Bitcoin is trading 1.6% lower at $98,190, with a total market capitalization of $1.943 trillion.
According to data from Deribit, 139,960 Bitcoin options contracts are set to expire on December 27, 2024. QCP Capital notes that while a short-term price squeeze could occur if spot prices rise, they remain cautious. The firm has observed profit-taking on BTC-100k-C options, with some traders rolling their positions to the March 2025 range of 130k-150k. This indicates significant supply in the upside gamma.
Bullish Outlook for 2025
Although Bitcoin is currently struggling to surpass $100,000, analysts remain optimistic about 2025. Standard Chartered has forecasted that Bitcoin could reach $200,000 by the end of 2025. Additionally, institutional buying, including purchases by MicroStrategy and inflows into Bitcoin ETFs, are expected to fuel further price surges.
Moreover, reports suggest that tech giants like Amazon and Microsoft may begin building their Bitcoin reserves in 2025, adding momentum to the market.
The cryptocurrency market is entering a critical week, with attention focused on upcoming U.S. Consumer Price Index (CPI) inflation figures. Additionally, investors will closely monitor the release of the U.S. Producer Price Index (PPI) data.
Bhutan’s Bitcoin sales and global economic developments could significantly influence the market’s trajectory in the coming months.
