| Key Points: – Bhutan reduces state-linked Bitcoin holdings, adding supply amid cautious institutional sentiment. – Market impact hinges on execution: OTC via market makers versus on-exchange selling. – Standard Chartered flags near-term pullback risk, spotlighting microstructure and liquidity sensitivities. |
Bhutan has been reducing its state-linked Bitcoin exposure, and the latest selling activity has coincided with a more cautious tone from major banks on near-term crypto prices. The developments are separate, but together they frame a market where sovereign flows, institutional positioning, and liquidity interact in complex ways.
The direct market impact from Bhutan’s sales likely depends more on execution than headline size. If sales are routed through market makers and OTC channels, visible spot pressure could remain limited; if handled on-exchange, short-term liquidity could be tested. Either way, these moves add to circulating supply at a time when several institutions are signaling caution on near-term momentum.
Notably, Standard Chartered has warned of a deeper pullback risk in the weeks ahead, citing near-term pressures rather than structural concerns. That view does not attribute causality to Bhutan’s actions, but it heightens attention on supply-and-demand microstructure and broader risk sentiment.
Bhutan’s current holdings and recent on-chain movements
Based on data from Arkham, a wallet linked to the Royal Government of Bhutan moved about 184 BTC after roughly three months of inactivity on February 4, 2026, with the transfer valued near $14 million at the time. The figures indicate current sovereign-linked holdings have fallen to roughly 5,600 BTC, down from a peak of 13,295 BTC in October 2025.
As reported by MEXC News, Bhutan also executed additional transfers, 184.03 BTC and 100.8 BTC, to QCP Capital, a market-making venue, which observers read as pre-liquidity or orderly liquidation steps. The pattern suggests a shift from long-term accumulation toward balance-sheet management in response to market and mining conditions.
At the time of this writing, Bitcoin (BTC) traded around $67,577, with sentiment characterized as Bearish, 30-day volatility near 11.72%, and a 14-day RSI close to 32. These metrics point to fragile momentum, while price remains below the 50- and 200-day simple moving averages cited in the same dataset.
Compressed background: how we got here
From state-backed mining to recent sales
Bhutan’s crypto strategy originated in state-backed mining. Public disclosures in prior reporting note that the state-owned Druk Holdings began investing in Bitmain hardware in 2019 and built four mining sites, with mined BTC used domestically, including for public-sector payroll.
Between 2021 and 2022, the country’s entities transacted more than $817 million across several major tokens, and recent accounts indicate Bhutan has been selling Bitcoin in roughly $50 million clips. Those flows, combined with post-halving mining economics, help explain the rotation from accumulation to selective sales.
Context for the bank now cautioning on near-term crypto prices underscores why its views carry weight. “Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas,” according to the Standard Chartered PLC Overview.
Recent coverage by Investing.com adds that the bank’s near-term caution reflects headwinds such as spot ETF net outflows and macro uncertainty around the path of policy rates. While the institution’s longer-horizon stance remains constructive in other contexts, the near-term lens emphasizes the risk of additional downside before any subsequent stabilization.
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