The Royal Government of Bhutan’s decision to sell part of its Bitcoin reserves received in 2018 sparked a lot of attention in the cryptocurrency market. Over the last two months, Bhutan sold 1,696 BTC for $139M. Bitcoin (BTC) is now trading at nearly $97,500 per token, and market participants are very closely watching this move in hopes of revealing where BTC is headed in the near term.
Bitcoin Faces Pressure as Bhutan Sells BTC Holdings
BTC price increases have prompted Bhutan to sell part of its Bitcoin holdings. The most recent sale was also carried out in BTC by marketing 406 BTC for $40 million at an average value of $81,999 per coin. While this government strategic selling has certainly raised eyebrows about Bitcoin’s price momentum, the overall trend continues to be upward thanks to numerous institutional investors and increasing MATIC price adoption.
Yet, Bhutan is one of the biggest governmental holders of Bitcoin worldwide. However, 11,791 BTC, equivalent to $1.16 billion, remains in the country’s treasury. This long-term holding strategy means Bhutan wants to play in the high while it is in the game. Analysts say this method might assist Bhutan in saving its financial outlook in the long term, as it has successfully dug BTC utilizing hydroelectric power as a cleaner method to accumulate.
However, a few traders and investors have expressed some worries about the short-term impact of these sales. Even if Bhutan’s plan appears calculated, the steady trickle of Bitcoin into the market could also reduce pressure towards lower prices. BTC is still trending around $97,500 at that level, and the question remains whether this level can be held with the extra selling pressure to deal with.
Bhutan Uses Hydro Power for BTC Mining
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Sustainable mining is a key factor that makes the country own huge Bitcoin holdings. It has been found that Bitcoin mining can be powered by its abundant hydroelectric energy. However, Bhutan’s environmentally friendly approach has tapped a stash of BTC that differs from other speculative holders because it did not come from energy source speculators.
Unlike many other Bitcoin holders, Bhutan has this unique mining model. Instead, Bhutan has largely accumulated its BTC during periods of price decline, putting it among the largest government Bitcoin holders in the world.
While this is a sustainable approach, it has yet to receive much of a response from the market. However, some analysts believe that, while selling BTC reserves is a bad idea, it could be a sign that BTC reserves are being sold as a sign of changing strategy or current market conditions. While Bhutan is surely a government, it can sell large amounts of BTC quickly, which can quickly change the price response and investor sentiment.
BTC Faces Key Resistance at $98K Mark
Bitcoin’s currency action has remained pretty volatile since then, but its up or down movement is entirely contingent upon the movement of these key levels. BTC is currently testing the $97,500 mark, which faces immediate resistance if hit at $98,003. Should it penetrate this resistance level, Bitcoin could target the next key price levels of $100,418 and $103,617.
However, if the price drops below the critical support of $96,000, BTC may lose more. A break of this support zone could see BTC heading towards lower levels, with the next major support at $92,194. Since Bhutan’s periodic sales might contribute to any such fluctuations, investors should watch out for such support and resistance levels very closely.
These actions by Bhutan have the crypto market busy digesting the implications, and amid it all, the outlook for Bitcoin is cautiously optimistic. While bearish sentiment exists, most analysts are still optimistic about BTC’s broader long-term prospects, especially in 2025. We will see how the market reacts to these levels in the coming weeks, possibly with a trader focus.
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