The cryptocurrency market has just gone through a tumultuous week as the price of Bitcoin (BTC) at one point plummeted to the 72,000 USD range. In this context, a report from Arkham regarding the Bhutanese government transferring 22.4 million USD worth of Bitcoin to exchanges has prompted the community to worry about a widespread sell-off. That's how it is; to understand the bigger picture, one needs to look deeply into on-chain data and the cycle's sentiment.
1. The "money printer" named the Kingdom of Bhutan
Bhutan is not a new player. This country has quietly mined Bitcoin since 2019 and reached its production peak in 2023 with over 8,200 BTC. That's how it is; with energy costs of only about 120 million USD but generating over 765 million USD in profit, this is one of the most successful national investment deals in history.
The fact that Bhutan is transferring coins to QCP Capital addresses is seen as a periodic selling action to realize profits. Although the sold amount reaches up to 50 million USD each time, compared to the total supply and market liquidity, this is just a minor adjustment.
2. The concerning similarities with past Crypto winters
The head of the K33 research department, Vetle Lunde, pointed out that the 40% drop from the peak in October 2025 resembles the "capitulation" events of 2018 and 2022. That's how it is; the 4-year cycle mentality seems to be repeating as long-term investors begin to take profits while new capital remains hesitant. $BTC
3. Signs of "bottom fishing" are gradually emerging
Although the overall picture seems grim, the derivatives data tells a different story. On February 2, the spot trading volume surged above 8 billion USD, accompanied by an extremely negative funding rate. In the past, when the short side became overly enthusiastic and the cost of maintaining the position was heavily negative, it often signaled that the market was oversold and a reversal was about to occur. #Colecolen
4. The "death" price levels that brothers need to pay attention to
Currently, Bitcoin is fluctuating around the 72,000 USD mark. To maintain hopes of recovery, BTC needs to quickly reclaim the psychological support level of 74,000 USD.
Bad scenario: If the daily candle closes below 74,000 USD, the price could drift to 69,000 USD or worse, the 200-week moving average at 58,000 USD.
Good scenario: A strong tail pull accompanied by large volume in this area will confirm the bottom of this correction.