Key takeaways
Bitcoin’s derivatives market is showing signs of stress as funding rates drop sharply due to unwinding leveraged longs. Meanwhile, speculation around Bhutan potentially selling part of its $1.2 billion BTC stash is adding pressure to an already cautious market.
Bitcoin’s [BTC] derivatives market is showing signs of stress as funding rates drop sharply, driven by a wave of leveraged long positions being unwound.
The shift comes amid speculation that Bhutan is preparing to liquidate part of its vast Bitcoin reserves, following a $59 million transfer to a Binance-linked address.
While the Himalayan kingdom still holds more than $1.2 billion in BTC, the move has fueled market jitters and renewed debate over the impact of large-scale sovereign selling on crypto prices.
Leveraged longs unwind
Is Bhutan selling its Bitcoin?
Arkham Intelligence recently reported that the Royal Government of Bhutan moved $59 million in BTC to a new address (bc1q8ag).
The wallet had conducted a small test transaction to a Binance deposit address just a day earlier.
Source: Arkham
Although the Himalayan nation still holds $1.23 billion in Bitcoin, the timing and destination of its recent $59 million transfer raises speculation that Bhutan may be preparing to liquidate a portion of its holdings.
BTC faces short-term pullback
Meanwhile, Bitcoin was trading around $116,500 at press time, down 0.85% in the last session. This pullback suggests waning bullish momentum after BTC’s recent push toward $117,700.
With momentum indicators cooling, the asset faces short-term downside risk.
Source: TradingView
At press time, the daily RSI was at 53.2, placing it in neutral territory, though it hints at mid-range consolidation.
Meanwhile, the MACD remained bearish, with the signal line positioned above the MACD line, indicating potential short-term downside pressure.
Price action shows sellers stepping in at higher levels, likely influenced by broader market caution.
If selling pressure intensifies, BTC could retest support near $114,000. On the flip side, a reclaim of $118,000 would be essential to reignite bullish momentum.
