Bitcoin whales jolted markets this week as the Royal Government of Bhutan shifted funds and traders digested the Fed’s first rate cut of 2025. The moves came amid rising illiquidity, which could, according to the source, tighten supply.
Bhutan’s $107M Bitcoin transfer
On September 19, 2025, Bhutan transferred 913 Bitcoin, worth about $107 million, to two fresh wallets. The government retained more than 9,600 BTC, valued at over $1.1 billion. As a result, it now ranks as the sixth-largest sovereign Bitcoin holder globally, according to the source.
While the destination remains unknown, the consolidation suggests treasury maneuvering. However, no official rationale was provided.
Fed cut triggers swift market reaction
Two days earlier, on September 17, the Federal Reserve cut rates by 25 basis points to a 4.00%–4.25% target range. Bitcoin initially fell 2% on the news, then rebounded. Therefore, near-term volatility followed a classic macro shock pattern.
Coinciding with the policy move, a long-dormant whale sent 1,000 BTC worth $116 million. The coins were held since 2012, when they were priced at $847 each.
Illiquid supply at record high
Meanwhile, Bitcoin’s illiquid supply hit an all-time high of 14.3 million BTC on September 19. Whales have absorbed nearly 300% of the yearly mined supply, according to the source.
Such accumulation can, in theory, reduce tradable float. However, price outcomes remain uncertain and depend on future flows.
For context on sovereign holdings, see this overview. And for background on demand drivers in stable-value assets, read our guide to how stablecoins work.
Key takeaways
Bitcoin whales moved size while liquidity thinned. Highlights:
• Bhutan moved 913 BTC; still holds 9,600+ BTC.
• Fed cut rates 25 bps to 4.00%–4.25%.
• Dormant whale moved 1,000 BTC from 2012 holdings.
• Illiquid supply reached 14.3 million BTC.