TLDR
- Bhutan moved $47M worth of Bitcoin, signaling rising market outflows.
- Recent transfers by Bhutan raise concerns about Bitcoin’s price stability.
- Analysts predict a decline in BTC price as market sentiment turns negative.
- Bhutan’s wallet still holds 9,232 BTC valued at $1.04 billion.
The Royal Government of Bhutan has made another significant Bitcoin transfer, adding to growing concerns about selling pressure in the crypto market. On Wednesday, Bhutan moved 419.5 BTC, worth approximately $47.23 million, following the $107 million Bitcoin transfer it made just the week before. This move comes after the U.S. Federal Reserve resumed rate cuts, which had previously triggered the initial transfer of BTC holdings.
Rising Outflows from Bhutan’s Wallet
The latest transfer marks the second consecutive week of outflows from Bhutan’s Bitcoin wallet. According to Lookonchain, the government’s wallet now holds only a small portion of its previous Bitcoin holdings, with the remaining 9,232 BTC valued at $1.04 billion at the current market price. The ongoing transfers raise questions about rising selling pressure in the market, particularly after the U.S. Federal Reserve’s decision to cut interest rates.
Last week, Bhutan moved 913 BTC worth nearly $107 million to new wallet addresses. This increase in transfers has raised suspicions about the government’s future intentions with its Bitcoin reserves. Arkham data further indicates that Bhutan has sold a portion of its Bitcoin holdings on Binance in recent months while continuing to add crypto assets through mining.
Impact of Federal Reserve’s Rate Cut on Bitcoin Market
The Federal Reserve’s decision to lower interest rates has also contributed to market volatility, with many analysts predicting a potential decline in Bitcoin’s value. Notably, experts from 10x Research, Matrixport, and other institutions have pointed to the $109,899 price level as a key inflection point for Bitcoin. Negative sentiment has been building, particularly among options traders, whales, and Bitcoin ETF investors, who are cautious about further rate cu