According to a recent analysis by Arkham Intelligence, Bhutan has amassed more than $1 billion in Bitcoin as a result of the 2024 Bitcoin price surge.
Arkham Intelligence reports that Bhutan’s Royal Government currently maintains an inventory of Bitcoin exceeding $1 billion. The country is still relentlessly acquiring additional Bitcoin, despite having transferred $65 million to Binance wallets two weeks ago in anticipation of a sale.
Bhutan has not yet sold these assets. In the meantime, Donald Trump’s pledges to establish an official Bitcoin Reserve in the United States underscore a developing trend.
Arkham Intelligence, a blockchain analysis firm, has recently released new on-chain data that indicates that the Royal Government of Bhutan’s Bitcoin holdings are in excess of $1 billion. Bhutan has been extracting Bitcoin since 2021, and its growth rate increased last year. Bitcoin’s all-time high has facilitated an even more rapid expansion of these holdings.
Less than two weeks have passed since Bhutan deposited over 900 BTC, which is equivalent to $65 million, into a Binance account. A transfer of this magnitude would typically suggest a significant sell-off, similar to the substantial asset transactions that Germany conducted this summer. Nevertheless, Bhutan has maintained its Bitcoin mining operations at the same pace.
In other words, the $1 billion milestone is primarily the result of Bitcoin’s exceptionally favorable momentum, rather than a significant Bitcoin acquisition. Although Bhutan’s accounts contain slightly fewer bitcoins than they did prior to the transfer, the nation may be able to recoup this decrease.
Bhutan sent Bitcoin to Binance, while other countries, including El Salvador, refrained from selling. El Salvador has publicly declared that it will not dispose of its substantial assets, irrespective of their potential value. Donald Trump has also pledged to cease any attempts at sell-offs as part of his campaign.
Nevertheless, Peter Schiff, a renowned Bitcoin critic, recently expressed his opinion on the prospective market implications:
“If the United States government were to establish a Bitcoin reserve and purchase one million Bitcoin, it could potentially acquire millions more. Many HODLers, who were then worth millions or billions, would eventually begin taking out to spend their windfalls, as the US government’s purchase of 1 million Bitcoin would drive the price so high,” Schiff stated.
This scenario assumes a number of assumptions, one of which is that it would be exceedingly challenging to acquire a significant number of Bitcoins, particularly during periods of rising prices, as there are a total of 21 million Bitcoins. However, it does serve as an illustration of the level of confidence that these substantial Bitcoin inventories can inspire. The price would increase if the US government converted its stockpile into a genuine Reserve.
These dynamics would occur on a significantly lesser scale in Bhutan. Bhutan’s government has not expressed any intention to alter market dynamics, despite its status as a significant Bitcoin holder and miner. Currently, it appears to be in a position to become another standard bearer for state-held Bitcoin reserves, a trend that is on the rise.
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