Bhutan to sell Bitcoin: Analyzing the impact on BTC price

Bhutan's $22M Bitcoin transfer to market makers sparks on-chain analysis. Discover the potential price impact as mining difficulty increases.

Written by Charles Ledoux

Translated on February 5, 2026 at 13:24 by Simon Dumoulin

Image d'un paysage de montagne au bhutan avec un Bitcoin qui remplace le soleil levant

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A Massive Hemorrhage of BTC Reserves

The data is unequivocal and sends chills down the spines of bulls. According to the latest analysis from Arkham Intelligence, the wallet identified as belonging to Druk Holding & Investments (Bhutan’s financial arm) has moved approximately $22 million worth of Bitcoin to addresses linked to QCP Capital and Binance. This type of transfer to market makers or exchanges is typically a precursor signal to immediate liquidation.

Bhutan is selling Bitcoin. pic.twitter.com/WDuUQmBZsU
— Arkham (@arkham) February 4, 2026

This movement is not isolated. It fits into an alarming underlying trend: Bhutan’s war chest has dropped from 13,295 BTC last October to just 5,700 BTC today. In plain terms, the country has liquidated more than half of its holdings in less than six months. As Bitcoin struggles to maintain support at $71,000, this institutional selling pressure could act as an additional bearish catalyst, breaking the already fragile psychology of retail investors.

Crypto Mining in Crisis: The Real Reason Behind This Sale?

Why is Bhutan, a pioneer in green Bitcoin mining, selling its crown jewels? The answer likely lies in network profitability. Since the last Halving, mining conditions have become considerably tougher. With Bitcoin price correcting more than 40% from its October 2025 ATH (All-Time High), and mining difficulty remaining near peaks, margins have collapsed.

Bhutan uses its hydroelectric surplus for mining, but facing a bearish market, the need for liquidity (fiat) to cover operational costs or finance national infrastructure seems to be taking precedence over long-term holding strategy. If even mining nations are starting to capitulate, this could signal we’re entering a phase of purging the least profitable miners, a classic but painful phenomenon of bear markets.

With Bitcoin oscillating dangerously around the $70,000 – $72,000 zone, every institutional sale is being scrutinized with anxiety. Has the market already priced in these sales or are we risking a cascade of liquidations toward $60,000? The ability of buyers to absorb these volumes in the coming days will be decisive for the rest of the cycle.

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Charles Ledoux

Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.

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