Bhutan Government BTC Transfer Raises Speculations As BTC Crosses $71K

Just as Bitcoin hit the $70,000 level, the Bhutan Government has made a major move that has raised questions across the crypto community. The move follows as BTC price rallied over $71,000 amidst better market conditions, US elections, and technical strength in the Bitcoin chart.

Bhutan Moves $66M Worth Of BTC

Bhutan’s government has started moving its quietly accumulated Bitcoin holdings as the price soared above the key $70,000 level. The Bhutan government-labeled wallet transferred 935 BTC worth $66 million of Bitcoin to the Binance deposit wallet, suggesting that it intends to sell the BTC on the world’s largest cryptocurrency exchange.

The $66.5 million was transferred in two transactions on Oct. 29. The government currently holds a total of 12.45K BTC, valued at $886.84M. Earlier today, Bhutan also sent another 102 BTC, worth more than $7 million, to Binance.

The transactions come amid a recent spike in the price of Bitcoin. As of now, the leading cryptocurrency is trading at $71,667, up over 3% in the last 24 hours, very closely approaching the $73,700 high it reached in March this year.

Meanwhile, the recent transactions show Binance as Bhutan’s primary exchange for both deposits and withdrawals, totaling $254.3 million. Other exchanges used include Celsius and Kraken but with comparatively lower transaction volumes.

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Bhutan’s Other Crypto Holdings

The wallet related to the government also holds Ethereum worth over $1 million, as well as other crypto such as BOBO, SAND, MATIC, BNB, BIM, INS, and USDT. However, Bitcoin remains the largest and dominant holding. Just last month, Bhutan surpassed El Salvador in terms of Bitcoin holdings, becoming the largest Bitcoin holder in South Asia.

The Bitcoin holdings are reportedly linked to the Kingdom of Bhutan’s investment arm, Druk Holdings and Investments (DHI), which has been mining Bitcoin using the country’s abundant hydroelectric power.

Bhutan’s interest in Bitcoin mining arose as a response to the economic challenges caused by the COVID-19 pandemic. Bhutan chose a more proactive approach by investing directly in Bitcoin mining, which aligns with its broader strategy to diversify its revenue streams. Bhutan embracing BTC mining reflects a broader trend among nations seeking alternative sources of income.