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Bhutan's Bitcoin holdings exceed $1 billion

Bhutan's Bitcoin holdings exceed $1 billion

GrafaGrafa2024/11/12 11:00
By:Mahathir Bayena

The Royal Government of Bhutan has surpassed one billion dollars in Bitcoin (CRYPTO:BTC) holdings, driven by a significant price surge in 2024, according to Arkham Intelligence.

Bhutan has been actively mining Bitcoin since 2021, with an accelerated acquisition rate last year.

The recent bullish momentum of Bitcoin prices has further increased the value of Bhutan's cryptocurrency reserves.

Arkham Intelligence's latest analysis highlights that Bhutan's Bitcoin stockpile now exceeds one billion dollars.

Two weeks prior, Bhutan transferred over 900 bitcoins, valued at approximately $65 million, to a Binance account.

Typically, such large transfers indicate a potential sell-off, similar to Germany's substantial asset sales this summer.

However, Bhutan has continued its Bitcoin mining activities at consistent rates, suggesting ongoing investment rather than liquidation.

As a result, the one billion dollar milestone is attributed more to Bitcoin’s price appreciation than to new acquisitions.

Despite the transfer, Bhutan's overall Bitcoin holdings remain robust, with the possibility of regaining any slight decrease in their wallet balances.

Bhutan joins other nations like El Salvador in maintaining significant Bitcoin reserves, reflecting a broader trend of state-level cryptocurrency adoption.

El Salvador has publicly committed to retaining its large Bitcoin holdings regardless of market fluctuations.

Similarly, former U.S. President Donald Trump has pledged to prevent the establishment of an official Bitcoin reserve sell-off.

“If the US government actually established a Bitcoin reserve and bought 1 million Bitcoin, it might end up buying millions more. Since the US government’s purchase of 1 million Bitcoin would drive the price so high, many HODLers, then worth millions or billions, would finally begin cashing out to spend their windfalls,” Schiff stated.

Peter Schiff, a noted Bitcoin critic, commented on the potential market impact of large government Bitcoin purchases.

His perspective highlights concerns about the influence of substantial government-held Bitcoin on market dynamics.

In contrast, Bhutan appears to adopt a more measured approach, focusing on maintaining its Bitcoin reserves without intending to significantly alter market conditions.

The country's strategy positions it as a standard bearer for state-held Bitcoin reserves amid a growing global trend towards governmental cryptocurrency investment.

At the time of reporting, the Bitcoin price was $89,183.47.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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