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The Kingdom of Bhutan, often celebrated for its commitment to Gross National Happiness over traditional economic metrics, has quietly moved a portion of its substantial Bitcoin holdings to Binance as the digital currency’s price surged past the $71,000 mark.
Amid global volatility, Bhutan’s foray into Bitcoin highlights its innovative approach to economic resilience and modernization.
Bhutan’s Bitcoin accumulation
Bhutan’s journey into Bitcoin began over five years ago, with the government accumulating Bitcoin through both mining and direct holdings.
As of October 2024, Bhutan’s wallet reportedly contains around $886 million in Bitcoin, equivalent to approximately 26.9% of the nation’s 2023 GDP of $2.9 billion.
This substantial Bitcoin reserve has contributed significantly to Bhutan’s economic policies, even supporting a 50% salary increase for public servants in 2013, funded by revenue from the nation’s mining operations through Druk Holding and Investments (DHI).
Bhutan’s commitment to crypto mining has proven to be a lucrative endeavour, establishing the country as a key player in the cryptocurrency ecosystem.
The royal government’s manoeuvres reflect a forward-thinking approach to digital assets within a rapidly evolving global economy.
As other nations grapple with regulation and adoption challenges, Bhutan has leveraged Bitcoin’s potential for national economic growth and stability.
With its mining-driven reserves and strategic market actions, Bhutan is emerging as a unique player on the global Bitcoin stage, navigating cryptocurrency’s volatility while bolstering its economic resilience.
According to Arkham Intelligence, Bhutan’s government-labeled wallet transferred over $66 million worth of Bitcoin in two transactions to Binance on October 29.
This movement likely indicates that Bhutan intends to capitalize on Bitcoin’s recent price rally.
Bitcoin price hits $71,816
Today, the price of Bitcoin has surged to a high of $71,816.01, representing a significant milestone, nearing its all-time high of $73,750, reached in March 2024.
Among the factors likely behind the sudden BTC price surge are global economic factors.
Notably, China’s anticipated $1.4 trillion debt plan has stirred interest among investors in assets like Bitcoin, often seen as a hedge against inflation.
Bitfinex analysts note that significant liquidity injections, such as China’s plan, have historically boosted risk assets, pointing to parallels with the US COVID-19 relief packages, which drove Bitcoin’s price up by over 400% from March 2020 to early 2021.
Additionally, the upcoming US presidential election has added another layer of anticipation to Bitcoin’s market, with analysts predicting that a victory by Donald Trump could prove bullish for risk assets.
However, as major Bitcoin holders, or “whales,” strategically sell portions of their Bitcoin holdings, it could lead to volatility in Bitcoin’s price.
Particularly, Bhutan’s actions may influence short-term market dynamics, introducing selling pressure into the crypto market at a time of heightened interest and activity.
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