Bitcoin Profit-Taking Intensifies as BTC Nears All-Time High: Will Bhutan Follow Suit?

Bitcoin Profit-Taking Intensifies as BTC Nears All-Time High: Will Bhutan Follow Suit?

A Binance deposit address recently received almost 1,000 BTC from the government of Bhutan. Of the asset, it owns $900 million.

On Tuesday, 99.7% of the circulating supply of the largest cryptocurrency was in profit, prompting many investors to sell to lock in gains as it approached its record high of $73,000.

According to Arkham Intelligence, the Bhutan government, which owns bitcoin (BTC) worth more than $900 million, moved some of its holdings to exchanges on Tuesday. This led to speculation that the government was about to sell some of its holdings, which could affect market prices.

According to Arkham data, Bhutan moved $65 million worth of bitcoin to the cryptocurrency exchange Binance late on Tuesday as the largest cryptocurrency got closer to a lifetime high above $73,500. According to CoinDesk Indices, BTC dropped to around $72,400 in London at midday.

After Arkham for the first time identified wallets belonging to Bhutan, the tiny, picturesque Southeast Asian nation became a BTC whale—an influential holder of the asset—earlier this year, making it the second nation after El Salvador to officially hold BTC.

Through mining operations operated by state-owned Druk Holdings, the nation's bitcoin holdings now account for nearly a third of its GDP. The mining is connected to Bitdeer Technologies Group (BTDR), which has been expanding mining facilities throughout the nation and wants to have a capacity of 600 megawatts by 2025.

Druk's broader strategy to diversify revenue streams includes Bhutan's investment in digital assets. Recent wallet activity shows both deposits and withdrawals, including significant transactions with exchanges like Kraken. Prior to publication, there was no response to an email sent to the department regarding the bitcoin movements to exchanges and any plans associated with them.

In the meantime, Druk wallets that Arkham monitors have seen a lot of activity lately in terms of deposits and withdrawals. Over the past week, it has received up to 2 BTC from Foundry, a different miner, and other unidentified Bitcoin addresses.

Profit-taking 

Whales are moving BTC in Bhutan as part of a larger pattern of profit-taking as the cryptocurrency's price approaches its March record high.

According to research conducted earlier this month by CoinDesk, their market activity may slow the ascent toward the record as more holders move into profit and attempt to lock in gains. Profit-taking has not diminished since the research's publication on October 17, but it still appears likely that a new all-time high will be reached.

Even though bitcoin realized profit peaked on October 8 and has begun to slow down, which is a positive development, profit-taking is still higher than the annual average.

As of Tuesday, $1.5 billion of realized profit had been taken from 99.7% of the circulating supply. Glassnode data indicate that the majority of that has come from larger organizations holding at least 100 BTC.