Bitcoin News: Bhutan Govt Dumps Another $34.5 Million in BTC, More Selloff Ahead?

Key Insights:

• The kingdom of Bhutan makes Bitcoin news headlines after offloading another large tranche of Bitcoin.
• Bhutan has so far trimmed its BTC balance by about 70%.
• BTC price faces another wave of sell pressure.

Bitcoin news headlines have recently highlighted a spike in selling pressure above $65,000. Interestingly, recent data suggests that the Kingdom of Bhutan might be among the sellers.

If you have been keeping up with BTC news over the last few years, then you are likely aware of the Bhutan government’s appetite for Bitcoin. For context, Bhutan was among the top 5 countries by Bitcoin holdings.

Bhutan is back on Bitcoin news headlines today, but this time it is because it might be trimming its holdings. Arkham data tracking the Bhutan government’s Bitcoin addresses just registered a large transfer.

Bitcoin worth roughly $34.6 million was reportedly moved from the Bhutan government’s BTC crypto holding addresses to its Binance deposit addresses.

The transfer has analysts wondering whether Bhutan is selling some of its Bitcoin. After all, transfers to exchange addresses usually underscore the intent to sell.

Bitcoin News: Bhutan Has Been Selling Bitcoin In Recent Months

The expectations that the Bhutan government may be about to sell $34.6 million worth of BTC are not misplaced. This is because it is not the first time that the country has offloaded some of its BTC.

In fact, the country has been rapidly selling off its Bitcoin stash over the last 2 years. To put things into perspective, Bhutan’s government’s Bitcoin balance has so far dropped from peak levels above 13,000 BTC to less than 4,000 BTC.

The value of the Bhutan government’s current Bitcoin holdings is now estimated to be just over $113 million. In other words, the country still holds a significant amount of BTC, but it has also contributed to sell pressure.

The government has maintained an overall outflow trend in the last 12 months. Previous reports revealed that the Bhutan government has been using the proceeds from its Bitcoin holdings to supplement its expenditure.

Bhutan is among the many institutional holders that have been disposing of BTC over the last 12 months. It is worth noting that most of the Bitcoin that Bhutan is selling was from its crypto mining operations.

Bitcoin Price Faces More Sell Pressure Amid Rate Hike Concerns

Bitcoin price pushed above $67,000 on Monday at the height of what appeared to be a recovery rally. However, savvy investors demonstrated caution, which was evident in the form of weak spot flows and broader positioning in the derivatives segment.

Bitcoin price was down by almost 5% from its weekly peak on Monday to its price tag at press time. However, the reasons behind this decline could indicate a potential downside.

The Federal Reserve has reportedly signaled plans to hike rates. Such expectations often trigger a spike in sell pressure as investors position for the fall. This was evident not just in Bitcoin price but also in other asset classes, including gold.

Half of the FOMC participants have reportedly projected that at least one rate hike will happen before the end of the year. Such scares have historically had a significant impact on investor sentiment.

Speaking of sentiment, the Bitcoin fear and greed sentiment has since dropped from 23 points two days ago to 15 points at the time of observation.

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