The Bhutanese government transferred over $23 million worth of Bitcoin to Binance when Bitcoin surpassed the record level of $112,000.
The transaction was executed amid strong growth in the cryptocurrency market, helping Bhutan's total cryptocurrency portfolio reach approximately $1.3 billion, while also reflecting profit-taking trends from long-held Bitcoin wallets.
MAIN CONTENT
Bhutan transferred 213.5 BTC worth $23.73 million to Binance amid Bitcoin reaching ATH.
Bhutan's cryptocurrency portfolio increased to $1.3 billion thanks to the rise of Bitcoin and Ethereum.
The transfer of long-held wallets to exchanges reflects the profit-taking trend of Bitcoin whales.
How did the Bhutanese government transfer Bitcoin to Binance and why?
Blockchain analyst Arkham Intelligence confirmed that Bhutan transferred 213.5 BTC, equivalent to $23.73 million, to Binance on July 9, 2024. The transaction occurred just as Bitcoin surpassed its historical peak of $112,000, indicating the move may be aimed at selling for profit.
This is the second consecutive time that large transfers from Bhutan to Binance have occurred, demonstrating the government's proactive cryptocurrency asset management activities through a professional and legal platform.
Bhutan is taking advantage of the high market moment to optimize the value of its cryptocurrency portfolio, reflecting a strategic and systematic investment approach amid significant market volatility.
Arkham Intelligence, 2024
How has Bhutan's cryptocurrency portfolio grown over the past week?
According to Arkham's data, Bhutan's total cryptocurrency portfolio value increased from $1.26 billion to $1.304 billion in just one week, equivalent to an increase of $38.4 million. Most of the added value came from Bitcoin's price increase from around $105,690 to $111,268/coin.
In addition, Bhutan's 656 Ethereum also increased in value from $1.58 million to $1.71 million despite the amount remaining the same. Other smaller tokens like AIKEK, KIBSHI, and BOBO also experienced slight growth, contributing to the diversification and stability of the portfolio.
Real-life examples of investment and mining in Bhutan
Bhutan is expanding cryptocurrency mining in 2023 through a joint venture with Bitdeer (Singapore), building a 600 MW mining facility in Gedu. The project is being deployed in an area that was previously intended for a $1 billion education infrastructure project but failed, indicating an effective strategic investment shift.
Why are old Bitcoin wallets moving large amounts of money to exchanges?
On-chain data from CryptoQuant recorded that Bitcoin wallets that had been inactive for 7-10 years began transferring coins to exchanges. This movement is seen by analysts as a sign that whales are starting to take profits after a long holding period.
"Movements from Bitcoin wallets from a decade ago often signal major changes in the market and could drive short-term price volatility."
CryptoQuant, 2024
Specifically, last week, there was a transfer of 20,000 BTC worth $2.18 billion from two early Bitcoin wallets that had not been touched for 14 years. Concurrently, the trading volume of derivatives and the liquidation of short positions on Binance surged, contributing to pushing the price above $112,000.
The impact of derivative trading activities on Bitcoin prices
The Net Taker Volume metric on Binance reached over $100 million within 7 hours, indicating a surge in leveraged buying. At the same time, the Funding Rate of perpetual contracts hit +0.01%, the highest since the end of June 2024, indicating strong demand for long positions in the current market context.
Investment Criteria Bhutan Old Bitcoin Wallet Situation Amount of BTC ~11,930 BTC 20,000 BTC transferred BTC Value Transferred 213.5 BTC = 23.73 million USD 20,000 BTC = 2.18 billion USD Purpose Profit-taking, portfolio rebalancing Profit-taking, increasing exchange liquidity Market Impact Bitcoin price increase due to rational selling demand Activation of short liquidations, driving prices up
Frequently Asked Questions
How much Bitcoin does the Bhutan government hold and what is its current value? According to Arkham Intelligence, Bhutan holds 11,930 BTC worth approximately $1.3 billion as of July 2024. Why did Bhutan transfer Bitcoin to Binance? To take profits or restructure its portfolio when the Bitcoin market surged, demonstrating a flexible investment strategy. What does moving old Bitcoin wallets signify? This is a sign that whales are starting to take profits after a long holding period, which could significantly impact the market's upward momentum. How does the Funding Rate on Binance affect the market? A high Funding Rate indicates increased demand for leveraged long positions, contributing to pushing Bitcoin prices higher. Is Bhutan expanding its cryptocurrency mining operations? The Bhutanese government is collaborating with Bitdeer to build a 600 MW mining facility in 2023, reflecting long-term investment in the cryptocurrency sector.
Source: https://tintucbitcoin.com/bitcoin-lap-dinh-moi-bhutan-ban-thao/
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