Bhutan’s $59M Bitcoin Move Shakes Markets—Here’s Why Traders Are Panicking

Bhutan just dropped a crypto bombshell—and the market’s sweating bullets. A $59M Bitcoin transfer from the Himalayan kingdom sent shockwaves through trading desks, sparking fears of a looming sell-off. Was it strategic liquidation… or just another government fumbling its digital gold?

The ripple effect: When nation-states play whale.

Overnight, BTC charts flashed red as analysts scrambled to decode the move. Sovereign wealth meets crypto volatility—and suddenly, ‘HODL’ feels like a meme. Meanwhile, Wall Street’s old guard clutches pearls: ‘See? This is why we stick to bonds.’ (Spoiler: their 1% yields aren’t saving anyone.)

Pro tip: Watch the wallets. If Bhutan’s Druk Holdings starts dumping, brace for impact. If not? Maybe they’re just stacking sats between dragon sightings.

Key takeaways

Bitcoin’s derivatives market is showing signs of stress as funding rates drop sharply due to unwinding Leveraged longs. Meanwhile, speculation around Bhutan potentially selling part of its $1.2 billion BTC stash is adding pressure to an already cautious market.

Bitcoin’s [BTC] derivatives market is showing signs of stress as funding rates drop sharply, driven by a wave of leveraged long positions being unwound.

The shift comes amid speculation that Bhutan is preparing to liquidate part of its vast Bitcoin reserves, following a $59 million transfer to a Binance-linked address.

While the Himalayan kingdom still holds more than $1.2 billion in BTC, the move has fueled market jitters and renewed debate over the impact of large-scale sovereign selling on crypto prices.

Leveraged longs unwind

Bitcoin’s Perpetual Futures Funding Rates plunged below the 0.01% mark, at press time, retreating sharply from the elevated levels seen during recent market euphoria, according to Glassnode.

The drop shows a cooling in leveraged long positioning; traders are dialing back speculative bets in the derivatives market.

Source: Glassnode

Swift decline in Funding Rates often is a sign of a reset in trader positioning. It reduces the risk of long squeezes, but also hint at a more cautious market tone after weeks of aggressive bullish leverage.

The cooling in Bitcoin’s derivatives market is unfolding alongside a potential supply shock from an unexpected source – a sovereign holder.

Is Bhutan selling its Bitcoin?

Arkham Intelligence recently reported that the Royal Government of Bhutan moved $59 million in BTC to a new address (bc1q8ag).

The wallet had conducted a small test transaction to a Binance deposit address just a day earlier.

Source: Arkham

Although the Himalayan nation still holds $1.23 billion in Bitcoin, the timing and destination of its recent $59 million transfer raises speculation that Bhutan may be preparing to liquidate a portion of its holdings.

BTC faces short-term pullback

Meanwhile, bitcoin was trading around $116,500 at press time, down 0.85% in the last session. This pullback suggests waning bullish momentum after BTC’s recent push toward $117,700.

With momentum indicators cooling, the asset faces short-term downside risk.

Source: TradingView

At press time, the daily RSI was at 53.2, placing it in neutral territory, though it hints at mid-range consolidation.

Meanwhile, the MACD remained bearish, with the signal line positioned above the MACD line, indicating potential short-term downside pressure.

Price action shows sellers stepping in at higher levels, likely influenced by broader market caution. 

If selling pressure intensifies, BTC could retest support near $114,000. On the flip side, a reclaim of $118,000 WOULD be essential to reignite bullish momentum.

 

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