Binance shifts $1B SAFU fund into Bitcoin – Is BTC’s bottom forming?

Binance change has finalized the conversion of its $1 billion SAFU Fund from stablecoins into Bitcoin. The world’s largest change introduced it had acquired 4,545 BTC as the ultimate tranche of the conversion program introduced late in January.  

It added, 

“With SAFU Fund now totally in Bitcoin, we reinforce our perception in BTC because the premier long-term reserve asset.”

Supply: Blockchain 

AMBCrypto verified that SAFU (Safe Asset Fund for Customers) Fund handle 1BAuq certainly had the 15000 BTC, which was price $1.013 billion on the time of writing.

The change initially introduced the conversion plan on thirtieth January; in lower than two weeks, it has finalized this system at a mean value foundation of $67K. 

Binance framed the transfer as a response to the ‘market volatility and stress’ to help the sector’s ‘long-term progress.’

However the timing was additionally questionable. The transfer coincided with intense FUD in opposition to the change for allegedly triggering the October crash, with critics claiming Binance was behind this bear market. 

Is the ultimate BTC backside shut?

That stated, because the SAFU Fund conversion was introduced, BTC has dropped farther from $84K to $67K, marking an extra 20% drawdown. Nonetheless, one market watcher said, 

“Final time Binance did this was at round 30,000$ per BTC worth dumped like 10%-ish after which went up 4x within the subsequent 2 years.”

Right here, it’s price noting that Binance amassed over 16K BTC between 2022 and 2024. However the explosive BTC transfer in late 2024 was pushed by Donald Trump’s victory within the U.S. presidential election as a pro-crypto candidate. It had nothing to do with Binance’s accumulation spree.

Even so, if extra corporations and traders are available in at present ranges, it may assist stabilize costs and anchor a real market backside in the long term. 

Blockchain analytics agency Glassnode additionally took an identical stance, noting that whales had been already piling into discounted BTC. To this point, the 30-day Transferring Common for Alternate Whale Outflow has risen over 3% because the sharp drop to $60K. 

A Glassnode analyst added that this rhymed with the BTC market backside in 2022.

“This mirrors the construction seen in H1 2022, when whales amassed for a number of months and in a number of waves, earlier than the following bull market started.”

Supply: Glassnode

Within the quick time period, nonetheless, macro headwinds may nonetheless hold the crypto asset muted. At press time, BTC traded at $68K. 

Last Ideas 

• Binance has finalized the conversion of the SAFU Fund into BTC and now owns 15K BTC, price over $1 billion. 
• Whales’ shopping for spree surged by 3%, and the buildup development may assist stabilize the marketplace for the following bull run.