On-chain data tracking the Royal Government of Bhutan's Bitcoin wallets triggered renewed sell-off speculation this week after blockchain analytics platform Arkham flagged several large transfers. The data shows Bhutan-linked wallets moved 184 BTC (worth roughly $14 million) in a single transaction, with a separate 100.8 BTC transfer recorded five days earlier. Both transactions were routed to intermediary addresses.
Smaller stablecoin movements were also observed between Bhutan-linked wallets and exchange hot wallets, including $1.5 million USDT transfers involving Binance and Kraken. These flows added to market speculation that Bhutan could be preparing to liquidate part of its Bitcoin holdings, especially as Bitcoin recently fell to its lowest level since November 2024, amplifying sensitivity to whale activity.
However, a closer analysis suggests the activity does not yet confirm outright market selling. The transactions highlighted appear to be internal reallocations or custodial movements, rather than direct deposits into spot exchange wallets typically associated with immediate selling. No clear pattern of repeated exchange deposits, rising net inflows, or balance reductions consistent with systematic selling has emerged.
Arkham Intelligence data reveals that one of the recent transactions, the 100.82 BTC transfer valued at $8.31 million, went directly to labeled addresses tied to QCP Capital, a Singapore-based institutional market maker. This signals a strategic liquidation rather than distressed selling, as market makers enable large block trades without major market disruption.
Bhutan's total crypto portfolio remains heavily concentrated in Bitcoin. Arkham estimates the government, through its sovereign investment arm Druk Holding Investments (DHI), holds approximately 5,700 BTC, valued at around $412 million. This represents a dramatic contraction of over 70% from a peak of $1.4 billion. The portfolio decline is attributed to ongoing sales and depreciation in Bitcoin's price.
Historical data shows Bhutan has periodically sold Bitcoin, often in roughly $50 million tranches, with especially heavy sales between mid and late September 2025. The current $22.4 million in weekly outflows is smaller than past sales. The nation began its Bitcoin strategy in 2019, launching a mining operation powered by hydroelectric resources, which generated over $765 million in profits against energy costs of about $120 million.
