Bhutan has transferred more than $22 million worth of bitcoin from state-linked wallets over the past week, according to blockchain analytics firm Arkham. The activity adds to a pattern of periodic disposals tied to the country’s state-backed mining strategy and comes during a sharp market downturn.
Arkham data shows that one of the transfers took place five days ago and moved funds to addresses labeled as belonging to market maker QCP Capital. Additional transactions included 184 BTC worth about $14 million and another 100.8 BTC valued at roughly $8.3 million. The combined value reached about $22.3 million.
Transfers to market makers often signal an intention to sell, as these firms facilitate liquidity and execution across trading venues. Some of the coins also moved to new addresses and a Binance hot wallet, which leaves open the possibility of internal treasury management rather than immediate liquidation.
Bhutan is selling Bitcoin. pic.twitter.com/WDuUQmBZsU
— Arkham (@arkham) February 4, 2026
A long-running sovereign mining strategy
Bhutan launched state-supported bitcoin mining operations in 2019. The effort relies heavily on hydroelectric energy and has generated significant reserves over time. Arkham estimates total bitcoin profits of more than $765 million against energy costs near $120 million.
The country mined most of its holdings before the 2024 halving. Production slowed afterward as mining costs roughly doubled. Bhutan’s strongest year came in 2023, when it mined about 8,200 BTC and pushed total holdings above 13,000 BTC at the time.
Annual production estimates include about 2,500 BTC in 2021, 1,800 BTC in 2022, 8,200 BTC in 2023, and 3,000 BTC in 2024, according to Arkham. Bhutan’s reserves have since dropped from a peak of 13,295 BTC in October 2024 to around 5,700 BTC.
Bitcoin Treasuries data places Bhutan seventh among nation-state holders, behind the United States, China, the United Kingdom, Ukraine, El Salvador and the United Arab Emirates.
Arkham notes that Bhutan often sells bitcoin in batches of around $50 million. One of the heaviest selling periods occurred in mid-to-late September 2025.
Wallet activity resumes after months of quiet
Onchain tracking shows the latest transfers marked Bhutan’s first notable wallet movement in roughly three months. Some transactions flowed to known counterparties such as QCP Capital and exchange-linked wallets, while others went to newly created addresses.
The destinations align with trading activity, liquidity management or collateral positioning. The transfers do not confirm immediate liquidation, but they occurred during a volatile stretch for digital assets and global markets.
Bhutan’s approach contrasts with highly public corporate treasury strategies. The country has built its holdings largely outside public view, which has made wallet activity closely monitored by traders and researchers.
Bitcoin slides as macro pressure intensifies
The movements occurred as bitcoin fell sharply from its October peak. The asset has dropped about 40% from its high and is now trading near $72,000. The price decline has revived comparisons to past four-year cycle downturns.
K33 Research head Vetle Lunde acknowledged similarities to earlier deep corrections in an investor note but argued that the current market structure differs from previous cycles. Institutional adoption, inflows into regulated investment products and a shifting rate environment offer stronger support than in earlier downturns.
Lunde also pointed to behavioral dynamics. Long-term holders trimming positions and cautious new capital can reinforce selling pressure. February 2 recorded spot trading volume above $8 billion, while derivatives markets showed extreme negative open interest and funding rates. Those conditions have preceded reversals in prior cycles, though they have also appeared during false starts.
K33 Research identified support around $74,000, with potential downside toward $69,000 or the 200-week moving average near $58,000 if that level fails.
Broader narratives shape sentiment
Bitcoin has fallen more than 42% from its all-time high of $126,080 last October. Market sentiment has weakened over the past three months. Macroeconomic uncertainty, geopolitical tensions and legislative delays tied to crypto market structure have weighed on risk assets.
Investors have shifted capital toward traditional safe havens such as gold and silver. Additional narratives have entered the market, including concerns about quantum computing risks to bitcoin’s security model and a drop in network hashrate as unprofitable miners shut down equipment.
The latest Bhutan transfers reflect how large holders adjust positions during stress. Sovereign-linked entities, corporate treasuries and miners have used bitcoin as a balance-sheet asset rather than a static reserve. The country’s wallet activity fits into that broader pattern while leaving open questions about the scale and timing of future sales.
Roman Zaika
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