TLDR:Bhutan has recorded a net Bitcoin outflow of approximately $120 million since the start of 2025.The government moves Bitcoin in $5M–$10M batches, sending funds to exchanges and firms like QCP Capital.A recent transfer of 123.7 BTC worth $8.5M went to a fresh address with a different address type.Bhutan’s total Bitcoin holdings have dropped by around 1,700 BTC, raising questions about a full exit.Bhutan Bitcoin sell-offs have drawn attention from the crypto community in recent weeks. On-chain intelligence firm Arkham has flagged a steady pattern of Bitcoin liquidations by the Himalayan kingdom. Since the start of 2025, Bhutan has moved approximately $158.57 million out of its main holding addresses. With $38.84 million transferred back in, the net outflow sits at around $120 million. This activity points to a consistent reduction in the country’s Bitcoin reserves.Bhutan Moves Bitcoin in Steady Clips to Exchanges and Market MakersThe Bhutanese government has been sending Bitcoin to exchanges and market makers in batches. Each transfer typically falls within the $5 million to $10 million range. Recipients have included trading firms like QCP Capital, per Arkham’s data. This pattern suggests a structured approach to liquidation.In mid to late September 2025, Bhutan sold approximately 3,500 BTC over a short window. That period stood out as one of the larger sell-offs from the country’s wallets. The transfers followed the same routing pattern seen throughout the year. Arkham noted the activity as consistent with Bhutan’s overall selling behavior.More recently, Bhutan moved 123.7 BTC, valued at roughly $8.5 million, to a fresh address. Arkham observed that the destination used a different address type from Bhutan’s main holdings. This detail raised questions about the ultimate destination of the funds. The transfer size closely matched the country’s typical batch range.Arkham flagged the transfer on X, citing the address type difference and the routing to a new wallet. The post attracted wide attention from traders and analysts across the crypto space.Bhutan just moved $8.5 Million of Bitcoin out of its main holding addresses.This transfer went almost entirely to a fresh address with a separate address type from Bhutan’s holding addresses. pic.twitter.com/hFE7YEBDFF— Arkham (@arkham) March 28, 2026Many began monitoring Bhutan’s on-chain wallets more closely following the announcement. The firm also noted a rise in outbound transfer frequency in recent weeks.Questions Mount Over Bhutan’s Bitcoin Mining FutureBhutan’s outbound transfer volume has been rising, with total holdings declining by roughly 1,700 BTC since January. This reduction has come through a series of smaller, recurring outflows rather than one large transaction. The approach points to a gradual and methodical drawdown strategy. Arkham’s data confirms that the pattern has held steady throughout the year.Not every outbound transfer reflects a permanent exit from Bhutan’s Bitcoin reserves. A portion totaling $38.84 million was transferred back into its holding addresses during the same period. However, the net movement still strongly favors outflows. The country appears to be reducing its position in a measured way.Bhutan became one of the first sovereign nations to mine Bitcoin at a national scale. The country drew on its hydroelectric energy surplus to run large mining operations over several years. Its growing reserves went largely unnoticed until on-chain platforms brought the wallets to public attention. Whether Bhutan plans to fully exit the Bitcoin mining sector remains an open question.Market observers are watching Bhutan’s wallets closely for signs of further acceleration. Sovereign-level selling, even in small clips, tends to draw attention from institutional traders. The growing frequency of transfers adds weight to concerns about a possible full exit. Arkham’s tracking of Bhutan’s addresses will remain the key source of updates going forward.The post Bhutan Bitcoin Sell-Offs Raise Questions as Net Outflows Reach $120 Million appeared first on Blockonomi.