The Royal Government of Bhutan has initiated a significant shift in its bitcoin holdings, moving funds to trading firms and exchanges for the first time in months. This activity coincides with a sharp drop in Bitcoin's price, which fell below $71,000, as broader market volatility escalates. According to onchain data tracked by Arkham, Bhutan-linked wallets have transferred over 184 BTC, valued at roughly $14 million, within the last 24 hours.

Transfers included funds sent to new addresses and established counterparties like QCP Capital and a Binance hot wallet, which are typically associated with trading and liquidity management. CoinDesk noted that this marks Bhutan’s first notable wallet movement in about three months. The timing aligns with a difficult period for crypto markets, where Bitcoin has dropped more than 7% in just 24 hours, alongside significant declines in silver and global equities.

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For the past two years, Bhutan has quietly amassed a bitcoin reserve through state-backed mining operations linked to hydropower. Unlike more vocal corporate treasuries, Bhutan's activities have remained largely under the radar, making any change in its wallet behavior particularly noteworthy for traders. The recent transfers may not signify outright selling; rather, they could represent internal adjustments or collateral management. Still, sending bitcoin to exchanges during a market downturn reflects a pivot away from treating bitcoin as a mere reserve asset.

These movements underscore a trend where large holders, including sovereign entities, are adapting their strategies as liquidity tightens and price fluctuations become more pronounced. Bhutan’s actions suggest a strategic rethinking of how bitcoin fits into their financial framework during turbulent times.