Bitcoin sell-off claims rejected as Bhutan denies BTC sales
Bhutan’s sovereign wealth fund, Druk Holding and Investments (DHI), has rejected claims that it is selling Bitcoin. In a statement to CoinDesk, DHI CEO Ujjwal Deep Dahal said he could not recall when the fund last sold any Bitcoin, directly disputing a report from blockchain analytics firm Arkham Intelligence.
The dispute began after Arkham flagged on-chain activity suggesting Bhutanese government wallets moved or potentially sold more than $200 million worth of Bitcoin since the start of the year. Arkham also projected that the position could be fully liquidated by October based on transaction pace.
DHI’s denial challenges the interpretation of wallet movements as market sales. Dahal said DHI has not been an active seller of its digital assets and raised the possibility that the observed transfers could reflect internal movements, custodial changes, or other non-sale activity.
For traders, the key issue is whether the on-chain flows translate into real supply overhang. Large sovereign Bitcoin sell-offs typically pressure price and can signal reduced institutional confidence. DHI’s response reduces that negative narrative, but the episode also highlights ongoing limits of on-chain analytics: transfers between wallets do not always equal actual sales.
Bhutan has previously been involved in early Bitcoin mining via hydropower resources, and DHI manages a portfolio that includes traditional assets and a significant cryptocurrency allocation. The exact size of Bhutan’s Bitcoin holdings remains undisclosed.
Neutral
The headline risk was a potential sovereign Bitcoin sell-off. Arkham Intelligence’s on-chain claims suggested large BTC movements could become a near-term supply overhang, which often turns bearish when traders anticipate institutional selling.
However, DHI (Bhutan’s sovereign wealth fund) publicly denied active Bitcoin selling and argued the transfers may reflect internal transfers or custodial adjustments rather than sales. This kind of “on-chain movement vs. actual sale” clarification tends to calm markets in the short term, similar to past episodes where wallet moves were later interpreted as rebalancing rather than dumping.
Still, uncertainty remains because Bhutan’s total Bitcoin holdings are not disclosed and on-chain interpretations can vary. In the long run, the market will likely track follow-up disclosures and continued on-chain behavior before fully repricing risk. Overall, this is more likely to reduce immediate downside fears than to confirm fresh bullish demand—hence neutral.