The Royal Government of Bhutan transferred 913 bitcoin, valued at approximately $107 million, into two newly created wallets this week.

This move coincided with the US Federal Reserve enacting its first interest rate cut of 2025, fueling concerns about possible sell pressure in the bitcoin market.

Bhutan’s bitcoin reserves and recent activity

According to blockchain data, the Bhutan government wallet now holds 9,652 bitcoin, worth over $1.1 billion.

The transfer marks the first activity from this wallet in a month; its previous transaction in August saw $92 million moved.

For additional context on nation-state holdings, see Bhutan’s historical and current bitcoin reserves.

Bhutan has notably embraced bitcoin in recent years, leveraging hydroelectric power for mining and establishing a bitcoin reserve.

In September 2024, the investment arm Druk Holding and Investments was identified as holding substantial bitcoin and other digital assets, reflecting the nation’s ongoing adoption efforts.

Whales and market volatility after Fed rate cut

The Bhutan transfer comes as other large holders, or “whales,” have also moved significant amounts of bitcoin.

Notably, a dormant wallet transferred $116 million in bitcoin acquired more than a decade ago, just ahead of the Federal Open Market Committee’s rate decision.

Ryan Lee, chief analyst at Bitget, warned that short-term volatility is likely:

“Historically, bitcoin has dipped 5–8% following rate cuts before resuming its upward path, suggesting a potential ‘sell the news’ phase in the days ahead.”