Finance

Bhutan’s Bitcoin Sell-Off: Will the Fed’s Rate Cut Trigger a Crypto Market Dip?

Bhutan moved $100M+ in Bitcoin; Fed cut rates. Analysts warn of volatility amid whale activity and market shifts.

September 19, 2025, 11:13 AM

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Executive Summary

The Royal Government of Bhutan transferred over $100 million worth of Bitcoin into new wallets, suggesting potential liquidation and market sell pressure.

This Bitcoin movement coincided with the U.S. Federal Reserve’s first interest rate cut of 2025, leading analysts to predict short-term market volatility.

Other significant Bitcoin holders (“whales”) also became active, with analysts forecasting a “sell the news” phase followed by potential long-term growth for Bitcoin and specific altcoins like Ethereum and Solana.

The Story So Far

The Royal Government of Bhutan and other large Bitcoin holders are moving significant sums of cryptocurrency, coinciding with the U.S. Federal Reserve’s first interest rate cut of 2025, which analysts anticipate will trigger short-term market volatility and a “sell the news” reaction in crypto markets, prompting investors to recalibrate their positions.

Why This Matters

The Royal Government of Bhutan’s transfer of over $100 million in Bitcoin, alongside other large “whale” movements, signals potential market sell pressure and investor recalibration. This activity, coinciding with the U.S. Federal Reserve’s first interest rate cut of 2025, is projected to usher in short-term market volatility and a “sell the news” phase, though analysts foresee potential for specific altcoins like Ethereum and Solana to outperform in the near term, and Bitcoin to achieve significant long-term growth if further rate cuts materialize.

Who Thinks What?

The Royal Government of Bhutan and other large Bitcoin holders, referred to as “whales,” are moving significant portions of their Bitcoin, suggesting they may be preparing to liquidate assets or are reacting to anticipated market shifts.

Ryan Lee, chief analyst at Bitget exchange, projects short-term market volatility and a “sell the news” phase for Bitcoin following the Federal Reserve’s limited rate cuts, but foresees long-term growth for Bitcoin and near-term outperformance for Ethereum and Solana.

Analysts generally advise investors to prepare for short-term market volatility and recalibration, attributing this to the combination of major Bitcoin transfers and the U.S. Federal Reserve’s recent interest rate cut.

The Royal Government of Bhutan initiated a significant transfer of over $100 million worth of Bitcoin this week, raising concerns about potential market sell pressure. This movement occurred just as the U.S. Federal Reserve delivered its first interest rate cut of 2025, prompting analysts to warn of potential short-term market volatility and investor recalibration.

On Thursday, a Bitcoin wallet labeled as belonging to the Bhutan government moved 913 Bitcoin, valued at approximately $107 million, into two newly created cryptocurrency wallets. This activity suggests the government may be preparing to liquidate a portion of its substantial holdings.

Despite the recent transfer, the original wallet still retains a significant sum of 9,652 Bitcoin, worth over $1.1 billion, according to blockchain data platform Lookonchain. This marks the first activity from the wallet in a month, with its last recorded transfer being $92 million worth of Bitcoin on August 18, as per Arkham data.

Whales Stir Amid Fed Rate Cuts

The Bhutan transfers coincided with other large Bitcoin holders, often referred to as “whales,” moving their coins ahead of anticipated market shifts. Notably, an unknown whale that had been dormant for 12 years reactivated on Wednesday, transferring $116 million worth of Bitcoin.

This whale initially acquired the Bitcoin for approximately $847 per token, valuing the entire sum at around $847,000 at the time of purchase. The transfer occurred shortly before Wednesday’s highly anticipated Federal Open Market Committee (FOMC) meeting.

The FOMC meeting resulted in the first U.S. interest rate cut of the year. Following the announcement, Bitcoin’s price initially surged, briefly topping $117,000.

However, the optimism was tempered by the median FOMC projection of only 50 basis points in total cuts for the year, according to Ryan Lee, chief analyst at Bitget exchange. Lee told Cointelegraph that this scenario introduces short-term volatility risks.

Historically, crypto markets have experienced a 5–8% dip following interest rate cuts before resuming an upward trajectory, Lee noted. He suggested that the current environment indicates a potential “sell the news” phase in the immediate days ahead.

Looking forward, Lee projected that Ethereum and Solana might outperform in the near term due to ETF-driven inflows and network catalysts. Bitcoin, he added, could consolidate before targeting price levels between $123,000 and $150,000, contingent on subsequent rate cuts materializing.

Key Takeaways

The recent movement of significant Bitcoin holdings by the Royal Government of Bhutan and other large investors, alongside the U.S. Federal Reserve’s interest rate cut, signals a period of potential market recalibration. Analysts are advising investors to prepare for short-term volatility, even as some foresee potential for specific altcoins and Bitcoin’s long-term growth if further rate cuts occur.