Recent Bitcoin movements by the Royal Government of Bhutan have triggered speculation over possible sell-offs, though on-chain data tells a more cautious story.
Quick Summary – TLDR:
- Bhutan-linked wallets moved over $22 million in Bitcoin during a period of declining market prices.
- On-chain data shows no confirmed signs of liquidation, suggesting internal transfers or custodial restructuring.
- The country has a history of periodic Bitcoin sales since it began mining the asset in 2019.
- Despite market concerns, Bhutan’s total holdings remain stable, mostly untouched by recent volatility.
What Happened?
The Royal Government of Bhutan recently transferred 184 Bitcoin worth around $14 million, drawing attention from crypto analysts and traders. Another transfer of 100.8 BTC was recorded just days earlier. In addition, Bhutan has reportedly sold $22.4 million in Bitcoin as part of its continued treasury strategy, raising questions about whether more liquidations are coming amid a broader market decline.
BREAKING: Bhutan Is Dumping $BTC 🚨
— Zia ul Haque (@ImZiaulHaque) February 4, 2026
The tiny Himalayan kingdom just moved hundreds of BTC to exchanges, cashing out big.
Profits taking or panic? pic.twitter.com/TWH51LzFJS
Bhutan’s Bitcoin Movements Raise Eyebrows
Bhutan’s wallets, tracked by platforms like Arkham and Onchain Lens, show notable transactions that coincide with recent Bitcoin price drops. The cryptocurrency recently dipped to its lowest point since November 2024, amplifying fear in a market already reacting nervously to large “whale” activity.
- A total of 184 BTC was transferred in one transaction.
- An earlier transaction involved 100.8 BTC.
- Small stablecoin movements like $1.5 million in USDT also occurred, involving platforms such as Binance and Kraken.
But despite the headlines, there’s a twist.
No Proof of Panic Selling (Yet)
Blockchain data analysts suggest these transfers are more likely to be internal reallocation or custodial arrangements, not direct deposits to spot exchanges that usually imply immediate selling.
- Arkham notes no sustained exchange inflows from Bhutan’s wallets.
- Wallet balances remain largely unchanged, suggesting no mass liquidation.
- The country’s total holdings are estimated at 5,700 BTC, worth approximately $417 million.
According to historical data, Bhutan has made similar wallet moves in the past without flooding the market or triggering crashes.
A History of Strategic Bitcoin Sales
Bhutan’s relationship with Bitcoin dates back to 2019 when the country began mining operations. The $22.4 million sale reported recently is consistent with Bhutan’s practice of occasionally liquidating mined assets.
The ongoing trend may reflect:
- Institutional confidence in crypto’s long-term viability.
- A strategy of portfolio diversification during volatile periods.
- Bhutan using Bitcoin sales to fund development initiatives without tapping into fiat reserves.
Market Context Adds Fuel to the Fire
Bitcoin has seen a 40% drop from its October peak, recently hovering near the $72,000 mark. Analysts have warned about a potential breakdown similar to 2018 and 2022, although some argue this cycle differs due to more institutional adoption and better market maturity.
Bhutan’s actions, however routine, become hyper-visible during bear phases, where even internal wallet reshuffling sparks alarm.
SQ Magazine Takeaway
I think this story is a perfect example of how blockchain transparency can both inform and mislead. While Bhutan did move a lot of Bitcoin, the actual data doesn’t show a clear sell-off. It’s just as likely they’re managing funds behind the scenes, not cashing out. We’ve seen this before from Bhutan. The real issue isn’t what they did, but how sensitive the market is to any big movement right now. Traders and analysts are on edge, and in this climate, even a routine transfer becomes breaking news.
