The Royal Government of Bhutan has recently sold $30 million in Bitcoin this February, coinciding with significant outflows from Bitcoin exchange-traded funds (ETFs) totaling $410.37 million. This market activity is notable as Bitcoin trades near $66,000, intensifying selling pressure.
Blockchain analytics from Arkham indicates that Bhutan transferred approximately $6.7 million worth of Bitcoin to QCP Capital, a market-making firm based in Singapore. This transaction is part of a broader trend, with the government reportedly selling Bitcoin in smaller tranches.
In previous weeks, Bhutan executed transactions involving 184.03 BTC valued at $14.09 million and an additional 100.82 BTC worth about $8.31 million. Both of these transfers were also linked to Druk Holding Investments, the investment arm of Bhutan, and directed to wallets associated with QCP Capital. Historical data suggests that the government typically sells around $50 million in Bitcoin at a time, with larger disposals recorded in September 2025.
Since accumulating Bitcoin through mining operations starting in 2019, Bhutan”s holdings peaked at 13,295 BTC in October 2024. Recent estimates indicate that its current reserves have dwindled to approximately 5,600 BTC, placing Bhutan seventh in the world for sovereign Bitcoin holdings. The continued reduction in reserves reflects strategic portfolio adjustments during periods of market weakness.
As Bitcoin approaches the $66,000 mark amidst increased selling activity, the implications of Bhutan”s actions are being closely monitored. The scale of these latest transfers appears smaller compared to prior liquidation phases, yet the consistent outflows align with softer price movements in the market.
Alongside Bhutan”s sales, institutional investors have been withdrawing substantial amounts from spot Bitcoin ETFs. Notably, data from SoSoValue reported $410.37 million in net outflows during a recent trading session, with BlackRock”s IBIT leading the way at $157.56 million and Fidelity”s FBTC following with $104.13 million. These withdrawals coincide with an options expiry for Bitcoin, contributing to the downward price pressure.
Market analysts are observing these trends closely, especially as Standard Chartered revised its 2026 Bitcoin price target down to $50,000, contrasting with Bernstein”s more optimistic forecast of $150,000. Bernstein characterized the current market pullback as the “weakest bear case,” attributing it to a lack of significant structural failures.
The combined effects of Bhutan”s Bitcoin sales and the ongoing ETF outflows have resulted in heightened short-term supply, prompting traders to keep a close eye on fund flow data and on-chain transfers for insights into future market direction.
