The Bhutanese government has bet on the rise of Ethereum, sending the cryptocurrency, which has fallen by almost a quarter over the past month, to staking.
On November 27, the country’s authorities locked 320 ETH worth $970,820 through the Figment service, earning a modest 2,86% annual return. Due to the large amount of digital assets to be unlocked, officials will not be able to withdraw the coins for at least 28 days, so their decision to stake Ethereum likely signals bullish sentiment.
However, on Friday, the kingdom’s government sent 160 ETH, worth $483,330, to a crypto wallet likely belonging to the Asian trading platform QCP Capital. This suggests that the authorities sold the coins, leaving the state with only 175 ETH, worth $531,020.
Cryptocurrencies stored in Bhutanese wallets
Ethereum’s price corrected after the dump to $2,623 and consolidated above $3,000. However, most traders doubt that the upward trend will continue and are preparing for a new bearish wave, which will result in kriptovalyuta will fall in price to $2,000.
The downward movement will be fueled by inflation caused by the increase in coins in circulation, driven by the decrease in fees received by validators. Consequently, the Bhutanese government took a significant risk by sending ETH to staking in a frosty time for the cryptocurrency market.