Today, the Royal Government of Bhutan created new positions, by transferring huge amounts of Bitcoin to three wallets. The move triggered speculation about the whale’s intentions, eliciting questions about the potential effect on the crypto market. The transfer, spotted by Lookchain, happened today on Friday, January 17.
Bhutan transfers 633 Bitcoin
According to data shared by Lookchain, Bhutan’s Royal government transferred 633 Bitcoin tokens worth $64.57 million to three new wallets.
While the purchase came at a time when Bitcoin prices experienced incredible surges, the acquisition signified that the government bought BTC at an average price of $102,006.
The buying activity by the Bhutan government highlights that whales have resumed their purchasing frenzy. Although big investors dumped Bitcoin late last month, they are now back buying huge amounts of the token; evidence that can be seen in current BTC prices.
Data shows that Bhutan’s Royal government currently holds a total of 11,055 Bitcoin worth $1.13 billion. The government has been a serious Bitcoin buyer as its decision to enter the digital asset market was fueled by economic necessity.
Bhutan, a country in South Asia, encountered decreasing tourism revenues and decided to diversify its income sources. Later, the COVID-19 pandemic seriously affected its $88.6 million annual tourism revenue, an incident that further proved the need for its strategic move into the crypto market.
Apart from Bhutan, several governments across the globe hold billions worth of Bitcoin and other cryptos as a strategic effort to grow their financial wealth.
Bitcoin price analysis
Today Bitcoin has continued to strengthen its uptrend, which started on Wednesday following the release of a positive inflation index that bolstered investors’ risk appetite.
On Monday last week, BTC witnessed a significant decline to a low of $90,000 amid a wider market correction. The consolidation was heightened by the news that US courts gave a green light to the DOJ to sell $6.5 billion Bitcoin confiscated in the black market Silk Road.
Things turned around this week on Wednesday after the announcement of the CPI data, which reported a decrease in inflation. As a result, crypto markets reacted positively, with BTC gaining a 5.7% rise that enabled it to climb to $96,000. Since then the largest cryptocurrency extended its recovery. Currently, it is trading at $102,518, up 3.2% over the previous day.
Altcoin markets also followed BTC’s rebound, with ETH and XRP displaying impressive bounce back, highlighting a potential market rally ahead.
Most cryptocurrencies have strengthened their uptrends, driven by increasing enthusiasm surrounding Trump’s inauguration next week. This upsurge movement has been mainly driven by expectations of favorable crypto regulations under the incoming regime led by President Trump.
Reports from Bloomberg today showed that Trump will sign an executive order making crypto a national policy priority and assign industry leaders a crucial role in spearheading regulations.
Significantly, the order may see the establishment of a national Bitcoin reserve using the government’s $20 billion Bitcoin seized from the Silk Road.
During the campaign period, Trump pledged a potential establishment of a Bitcoin strategic stockpile and the assignment of crypto advocates to key regulatory roles. Such promises boosted trader confidence in the crypto market.
