Bhutan moves $100M in Bitcoin after Fed rate cut, sparking sell-off fears

The Royal Government of Bhutan has transferred more than $100 million worth of Bitcoin to two different crypto wallets. This move follows the Fed’s first interest rate cut of 2025; now, investors are concerned about potential sell pressure in the market.

According to on-chain data, the Bhutan government-labelled wallet moved 913 Bitcoin worth about $107 million into two newly created crypto wallets on Thursday. It is unclear what the government plans to do with the BTC transferred, but investors view it as a preparation to sell a portion of its holdings.

Royal Government of Bhutan just transferred 913 $BTC($107M) to 2 new wallets and still holds 9,652 $BTC($1.13B).https://t.co/hiNf1ySism pic.twitter.com/r71p1hucir

— Lookonchain (@lookonchain) September 18, 2025

If the government liquidated its entire stash, it could add more than $1 billion of supply to the market. This could result in another season of volatility.

Analysts are warning of short-term market volatility

After the Federal Reserve cut base rates for the first time since December on September 17, the crypto markets failed to rally. As reported by Cryptopolitan, the Federal Open Market Committee lowered its benchmark interest rate by 25 basis points, moving the federal funds target range down to 4.00%–4.25%. 

At that time, Bitcoin, the most valuable digital currency in the world, was trading between $115,000 and $116,000. The price of the token didn’t change much. It dropped below $115,000 and then rose to around $117,000.

On the other hand, Bitcoin open interest surged, signaling that futures traders were positioning for heightened volatility. However, spot market activity told a different story, with aggregated spot volumes continuing to decline even as futures volumes spiked. 

This divergence suggests that the current price action is being driven largely by leveraged positioning rather than genuine spot demand. Without a stronger presence of spot buyers, the sustainability of the move remains uncertain, leaving the market vulnerable to sharp swings if leveraged positions unwind.

Still, the dovish stance is known to be broadly supportive of risk assets like crypto. Lower rates generally ease liquidity conditions and encourage risk-taking, which could benefit Bitcoin over the coming weeks.

However, according to analysts in the immediate term, volatility is likely to remain elevated as traders digest the policy shift and position themselves ahead of further economic data. For instance, on Wednesday, an unknown whale woke up after 12 years of dormancy to transfer $116 million worth of Bitcoin, which he initially acquired for just $847 per token, worth around $847,000 at the time. 

Bhutan still holds over $1 billion worth of BTC

After the government of Bhutan transfer, the original wallet now holds 9,652 Bitcoin worth over $1.1 billion. This year, the government has done several transfers. Previously, it moved $92 million worth of Bitcoin on Aug. 18 after moving $60 million worth of BTC earlier in the month.

In July, it moved 650 Bitcoin worth $74.24 million at the time to crypto exchange Binance through its investment arm, Druk Holding. The government also moved $63 million worth of Bitcoin on March 24 to three wallets, according to Onchain Lens.

Bhutan has embraced cryptocurrency under its current monarch, King Jigme Khesar Namgyel Wangchuck. It has leveraged its abundant hydroelectric power to mine Bitcoin since 2019. 

In September 2024, Arkham indicated that it had found the first wallet tied to the Bhutan government’s investment arm, Druk Holdings. Ever since, it has showcased the benefits of crypto adoption for developing economies. Therefore, its decision to sell has a profound effect on BTC investors. 

KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage