Bhutan gov’t moves $66M of Bitcoin stash to Binance as price tops $71K

Bhutan’s government has started moving its quietly accumulated Bitcoin holdings as the price soared above the key $70,000 level.

The Bhutan government-labeled wallet transferred over $66 million worth of Bitcoin (BTC) to the Binance deposit wallet, suggesting that it intends to sell the BTC on the world’s largest cryptocurrency exchange.

The $66.5 million was transferred in two transactions on Oct. 29, according to Arkham Intelligence data.

Bhutan government-labeled wallet outflows. Source: Arkham Intelligence

The government wallet began selling shortly after Bitcoin surpassed $70,000 for the first time since June 10. Significant price levels like $70,000 can lead to volatility, including profit-taking from large Bitcoin holders, known as whales, which can impact the price of Bitcoin.

BTC/USD, 1-month chart. Source: Cointelegraph

The Bhutan government’s wallet still holds approximately $886 million worth of Bitcoin, which could create further selling pressure for the cryptocurrency, as the wallet has been mining and holding Bitcoin for over five years.

Related: Solana flips Ethereum in daily fees, surpasses $2.5M in 24 hours

Bitcoin mining funded a 50% salary increase for public servants in Bhutan

Bitcoin mining has become a significant part of Bhutan’s economy, with its Bitcoin reserves accounting for over 26.9% of its $2.9 billion gross domestic product (GDP) in 2023, according to World Bank data.

In 2023, Bitcoin mining revenue from Bhutan’s Druk Holding and Investments was used to fund a 50% salary increase for public servants in the country, according to local media reports.

As of September, Bhutan held twice as much Bitcoin as El Salvador, which adopted Bitcoin over three years ago and has netted $31 million in profit since making BTC legal tender.

Related: EU MiCA rules pose ‘systemic’ banking risks for stablecoins — Tether CEO