Bhutan Moves $32M in Bitcoin Amidst Market Volatility
Bhutan Government Transfers $32 Million in Bitcoin
The Bhutanese government recently transferred $32 million worth of Bitcoin to a new wallet. This is the second major cryptocurrency transaction in two weeks, following a previous transfer of $63 million. Data from Arkham Intelligence confirms these movements.
Druk Holdings, the government's investment arm, currently holds approximately 8,594 Bitcoin, valued at roughly $729 million based on current market prices. Their portfolio also includes Ether, LinqAI, Phil, and Apu Apustaja tokens.
Bhutan's Crypto Strategy
While Bitcoin isn't legal tender in Bhutan, the country has been actively mining Bitcoin since 2019, leveraging its hydroelectric power. This has led to crypto holdings representing 30.7% of its GDP.
The Gelephu Mindfulness City Special Administration Region, announced its plans in January to integrate Bitcoin, Ether, and BNB into its strategic reserves. This move, under the Application of Laws Act 2024, aims to cultivate a regulated digital asset ecosystem.
Market Volatility and Trump's Tariffs
This Bitcoin transfer coincides with growing market anticipation of potential volatility surrounding President Donald Trump's "Liberation Day" tariff announcement. The White House has confirmed these tariffs will take immediate effect.
Agne Linge, Head of Growth at WeFi, highlights the increasing interconnectedness of digital and traditional markets. This makes cryptocurrencies more susceptible to macroeconomic shifts, especially during periods of investor risk aversion.
“The recent downturn in the S&P 500, reaching a new low, indicates heightened global market uncertainty, placing pressure on risk assets, including cryptocurrencies,” Linge stated.
Linge also notes that economic volatility indicators have exceeded historical highs, surpassing levels seen during both the 2008 financial crisis and the early 2020 pandemic.
“This surge in uncertainty reflects growing concerns about global economic stability, particularly with persistent inflationary pressures,” Linge added.
Trump's tariffs are anticipated to further fuel inflation, potentially leading to interest rate increases. This environment could initially negatively impact Bitcoin as investors may shift towards safer assets.
At the time of writing, Bitcoin was trading above $84,000 (CoinGecko).
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