The Kingdom of Bhutan has sold approximately 70% of its Bitcoin holdings over the past 18 months, reducing its position from 13,000 BTC to just 3,954 BTC since October 2024, according to recent reports. The small Himalayan nation has moved $215.7 million out of its cryptocurrency reserves this year alone, raising questions about whether it has also ceased its Bitcoin mining operations.

The kingdom’s last mining inflow exceeding $100,000 was recorded more than a year ago, suggesting a significant shift in Bhutan’s approach to cryptocurrency accumulation. Once considered one of the more intriguing state-level Bitcoin adopters, Bhutan’s strategic pivot reflects the broader challenges facing the cryptocurrency market.

The crypto markets have experienced notable turbulence in recent weeks. Bitcoin gained some ground after core CPI rose a less-than-forecast 0.2% in March, though headline inflation increased 0.9% driven by sharp rises in energy costs due to the Iran conflict. Institutional positioning in Bitcoin remains cautious, with investors betting on prices hitting $80,000 through call options while simultaneously purchasing downside protection.

The industry has also been rocked by high-profile disputes. Star Xu, founder of OKX, has publicly called Changpeng Zhao (CZ) of Binance a “liar” as the founders of the world’s largest crypto exchanges engage in a public argument over allegations dating back 11 years. The dispute included a $1 billion wager from CZ, highlighting the ongoing tensions within the crypto ecosystem.

Meanwhile, the Trump-backed WLFI token has dropped 12% to record lows after the team defended a multi-million dollar lending position, stating they would “simply supply more collateral” if markets moved against them-a statement that failed to reassure holders.

Binance has offered its UAE staff temporary relocation options as the Middle East conflict disrupts the region, though the exchange reports that its UAE operations remain unchanged and many employees have chosen to remain.

HSBC and Standard Chartered-led groups have landed major Hong Kong digital asset initiatives, signaling continued institutional interest despite market volatility.