How Bhutan’s $59M Bitcoin transfer sparked market fears!
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
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.