The current miner supply situation for Bitcoin remains more constrained than in earlier cycles, but has not reached the level necessary to be considered a substantial supply shock.
Despite the persistent selling pressure from exchanges, the latest insights from Axel Adler Jr.'s Bitcoin Morning Brief reveal that miners are still holding a substantial amount of over-the-counter reserves.
Two separate but related signals form the basis of Adler's central argument. Tracking the 30-day moving average of Bitcoin inflows from miners to exchanges reveals the market's selling pressure.
The second statistic examines the total amount of Bitcoin held on offline addresses associated with miners, providing a better understanding of the potential stock that may be available for sale outside of public order books.
A detailed analysis of those indicates that the market is effectively managing the distribution of miners, rather than facing an unforeseen deficit of concealed supply.
When miners have a small over-the-counter balance, it means they aren't sitting on a lot of idle inventory for large off-exchange transactions, which is a good indicator.
But the short-term market pressure will be there as long as miners keep sending coins to exchanges at a rapid rate.
Separately, in March, Bhutan has once again taken steps to further decrease its Bitcoin holdings by reallocating additional funds from a state-associated wallet.
Recent data from Arkham indicates that the most recent transfer occurred on Wednesday, contributing to a trend of transactions that have consistently reduced the nation's holdings since late 2024.
Using the hydropower of its mountain rivers, Bhutan has been mining Bitcoin for quite some time. The subject was not given enough attention. However, even though it is on the market, those numbers are starting to become more pronounced for markets to look the other way.
Alongside integrating Bitcoin into its economic structure, which encompasses mining operations and sustainable development initiatives related to cryptocurrency infrastructure, the initiative underscores Bhutan’s forward-thinking approach to overseeing its digital asset portfolio.
The Royal Government of Bhutan offloaded around $37 million worth of Bitcoin on Wednesday, according to Arkham Intelligence.
A number of these accounts have been linked to addresses affiliated with the trading company QCP Capital, which has made many appearances in Bhutan's record of transfers.
New information shows that on Wednesday, a wallet linked to the Bhutanese government transferred about 519.7 BTC, or about $36.7 million, to two other wallets.
A receiving wallet linked to QCP Capital was located by Onchain Lens. For the month of March, this is the third major Bitcoin transaction involving Bhutan. There were six transactions totalling over $72 million in the 24 hours leading up to March 18.
The Royal Government of Bhutan moved 519.7 $BTC worth $36.75M to 2 wallets and 1 linked to QCP Capital. https://t.co/hiGpK3qhfy pic.twitter.com/8vdGkWoSKx
— Onchain Lens (@OnchainLens) March 25, 2026
On March 9, a substantial transfer of $11.8 million took place. The government set aside an extra $72 million last week, and things are picking up speed again this week.
Money is moving regularly across several wallets in a short amount of time, which suggests a deliberate strategy rather than chance.
Bhutan's Crypto Dynamics
In 2021, Bhutan began harnessing its abundant hydroelectric resources from rivers to mine Bitcoin. Energy spending was nearly absent. And so, Bitcoin was established. By the end of 2024, the nation had amassed a significant amount as a result of market fluctuations, totalling nearly 13,000 BTC.
The present worth of the holdings is around $317 million, or 4,453 BTC. Bhutan is still officially acknowledged as the seventh-largest holder of Bitcoin globally, thanks to that status.
It ranks after the administrations of the US, UK, El Salvador, and the UAE.
Bhutan has been actively involved in the Bitcoin ecosystem, with government-backed mining programs and careful asset accumulation over the years being the main reasons for its high position.
To increase mining capacity, Bitdeer and the sovereign wealth fund Druk Holding and Investments partnered for $500 million in May 2023. This move is in line with Bhutan's broader plan to integrate digital assets into its financial system.
Additionally, the government has laid out plans to use Bitcoin assets for regional development projects.
The unique administrative territory of Gelephu Mindfulness City is now under construction, and in December 2025, Bhutan stated its plan to use BTC reserves to support its growth.
A Bitcoin strategic reserve was announced by the effort on January 8, 2026. As part of its comprehensive approach to digital assets, Bhutan's long-term economic framework is expected to include Bitcoin, Ether, and BNB in the reserve.
Recent sales indicate a strategic mindset. Gelephu Mindfulness City is an innovative special economic zone being built from the bottom up, and in December 2025, Bhutan announced its plan to allocate up to 10,000 BTC to promote its development.
Bitcoin sales help pay for essential government programs. According to Prime Minister Tshering Tobgay, this includes healthcare and salaries for government employees.
The extraction of each coin was done at a low cost. You get full profit from every deal.
Bitcoin is effectively managing the outflows from Bhutan and the leveraged short without showing significant strain, trading at over $70,000 currently.
The five-day ceasefire window in Iran, announced by Trump on Monday, continues to influence the broader landscape.
The ongoing macro pressures impacting the markets could ease if these discussions yield positive results. If they do not succeed, the situation will change swiftly.
