The government of Bhutan has recently initiated the process of moving its accumulated Bitcoin holdings in response to a significant rise in cryptocurrency prices, particularly as Bitcoin has surpassed the crucial $70,000 threshold.

Reports indicate that a wallet designated for government use transferred more than $66 million worth of Bitcoin to a deposit wallet on the Binance exchange, which is renowned as the largest cryptocurrency exchange globally.

This transfer suggests that Bhutan may be preparing to sell a portion of its Bitcoin holdings to capitalize on the current market conditions. The strategic timing of this move reflects the government’s intent to take advantage of the soaring Bitcoin prices while managing its digital assets.

The government wallet commenced selling shortly after Bitcoin crossed the $70,000 mark for the first time since June 10. Reaching significant price levels, such as $70,000, often leads to increased market volatility. This is primarily due to profit-taking activities by large Bitcoin holders, commonly known as “whales.”

These whales have substantial amounts of Bitcoin and may decide to sell portions of their holdings to capitalize on gains, which can substantially affect the overall price of Bitcoin in the market. The selling activity by these major players can result in rapid fluctuations, altering trader sentiment and potentially leading to further volatility.

The Bhutan government currently holds approximately $886 million in Bitcoin. This significant amount of cryptocurrency could contribute to increased selling pressure in the market.

The government has been actively mining and retaining Bitcoin for over five years, which means there may be potential plans for future sales or trades that could impact Bitcoin’s value.