In the context of the continuous strong rise in the price of Bitcoin and the effort to establish a new high, the Royal Government of Bhutan has sold a total of 406 Bitcoin from its reserve, worth around $40 million.
This move has taken place in the past two months, as the Bhutan government has been regularly divesting during the impressive price rise of Bitcoin, especially after the victory of Donald Trump.
Bhutan Transfers 406 Bitcoin from Reserves
Blockchain data from Arkham Intelligence shows that the Royal Government of Bhutan has transferred 406 BTC, worth around $40 million, to QCPCapital.
This shift has sparked many speculations in the community, with the assumption that this is a sell-off move.
Currently, the data shows that the Bhutan government's reserve still holds 11,791 Bitcoin, helping the country continue to hold the fourth position in the world in terms of government-held BTC.
At the current price, the total value of Bitcoin in Bhutan's reserve is estimated at around $1.164 billion.
Notably, Bhutan is considered a "paradise" for Bitcoin miners, with the majority of the BTC owned by the Bhutan government coming from mining activities using hydroelectric power.
This allows Bhutan to leverage its abundant natural resources to accumulate Bitcoin, a unique strategy in the context of the increasingly dynamic cryptocurrency market.
Since the price of Bitcoin began to rise sharply in late October, the Royal Government of Bhutan has sold 1,696 BTC with a total value of $139 million, at an average price of $81,999. These transactions were carried out through Binance and QCP Capital.
Where is the Bitcoin Price Heading?
This move comes as the Bitcoin price is facing difficulties in approaching the $100K mark, partly due to selling pressure from long-term investors.
At the time of writing, BTC is down 1.6%, trading around $98,190, with a market capitalization of $1.943 trillion.
Data from Deribit shows that a total of 139,960 Bitcoin option contracts will expire on December 27, 2024.
According to QCP Capital, although the spot price could potentially see a strong surge if a squeeze occurs, they have low expectations for this scenario.
QCP also observed that many investors are taking profits from their BTC-100k-C option positions and shifting to higher-strike (130K-150K USD) contracts expiring in March, indicating a significant increase in gamma supply on the upside.
While Bitcoin is facing challenges in breaking the $100K mark in the short term, analysts remain optimistic for 2025.
Standard Chartered forecasts that Bitcoin could reach $200K by the end of 2025. Additionally, the inflow of capital into Bitcoin ETFs and the buying activity from large institutions like MicroStrategy are expected to drive the upward momentum.
Furthermore, recent reports suggest that major tech companies like Amazon and Microsoft are expected to add Bitcoin to their reserves in the coming year.
The cryptocurrency market is entering an important week as investors turn their attention to the upcoming US Consumer Price Index (CPI) data release.
Additionally, other key indicators such as the Producer Price Index (PPI) will be closely monitored to assess the economic outlook and market prospects.
