Bhutan disputes $1B bitcoin outflow, says it didn't sell any BTC
Bhutan says it has not sold any bitcoin despite on-chain data showing over $1 billion in BTC moved to exchanges and trading firms over the past year.
Bhutan has denied selling any bitcoin, pushing back against on-chain data that tracked over $1 billion in BTC leaving wallets linked to the country over the past year.
The Royal Government of Bhutan, through its investment arm Druk Holding and Investments, has accumulated bitcoin through mining operations. Arkham Intelligence data shows that wallets attributed to Bhutan have sent large amounts of bitcoin to exchanges and trading firms, fueling speculation that the country was liquidating part of its holdings. However, a representative told CoinDesk that Bhutan 'doesn't recall' selling any bitcoin, creating a discrepancy between on-chain signals and official statements.
For crypto traders, this episode highlights the opacity of sovereign bitcoin holdings and the risks of relying solely on wallet labeling. If Bhutan indeed hasn't sold, the outflows could represent internal transfers, custodial changes, or other non-sale movements. Conversely, if the country is selling, it could add supply pressure, though the $1 billion figure is modest relative to bitcoin's daily trading volume. Traders should monitor exchange inflows from known government wallets and watch for any further clarification from Bhutan. The situation underscores the importance of verifying on-chain data with official sources before drawing conclusions about market-moving events.