Binance exchange has finalized the conversion of its $1 billion SAFU Fund from stablecoins into Bitcoin. The world’s largest exchange announced it had acquired 4,545 BTC as the final tranche of the conversion program announced late in January.
It added,
Source: Blockchain
AMBCrypto verified that SAFU (Secure Asset Fund for Users) Fund address 1BAuq indeed had the 15000 BTC, which was worth $1.013 billion at the time of writing.
The exchange initially announced the conversion plan on 30th January; in less than two weeks, it has finalized the program at an average cost basis of $67K.
Binance framed the move as a response to the ‘market volatility and pressure’ to support the sector’s ‘long-term growth.’
But the timing was also questionable. The move coincided with intense FUD against the exchange for allegedly triggering the October crash, with critics claiming Binance was behind this bear market.
Is the final BTC bottom close?
That said, since the SAFU Fund conversion was announced, BTC has dropped further from $84K to $67K, marking an additional 20% drawdown. However, one market watcher said,
Here, it’s worth noting that Binance accumulated over 16K BTC between 2022 and 2024. But the explosive BTC move in late 2024 was driven by Donald Trump’s victory in the U.S. presidential election as a pro-crypto candidate. It had nothing to do with Binance’s accumulation spree.
Even so, if more firms and investors come in at current levels, it could help stabilize prices and anchor a true market bottom in the long run.
Blockchain analytics firm Glassnode also took a similar stance, noting that whales were already piling into discounted BTC. So far, the 30-day Moving Average for Exchange Whale Outflow has risen over 3% since the sharp drop to $60K.
A Glassnode analyst added that this rhymed with the BTC market bottom in 2022.
Source: Glassnode
In the short term, however, macro headwinds could still keep the crypto asset muted. At press time, BTC traded at $68K.
Final Thoughts
- Binance has finalized the conversion of the SAFU Fund into BTC and now owns 15K BTC, worth over $1 billion.
- Whales’ buying spree surged by 3%, and the accumulation trend could help stabilize the market for the next bull run.
Source: https://ambcrypto.com/binance-shifts-1b-safu-fund-into-bitcoin-is-btcs-bottom-forming/
