Binance Exchange has completed the conversion of its $1 billion SAFU fund from stablecoins to Bitcoin. The world’s largest exchange announced that it had acquired 4,545 BTC as the final tranche of the conversion program announced at the end of January.
He aggregate,
“With the SAFU Fund now fully invested in Bitcoin, we reinforce our belief in BTC as the leading long-term reserve asset.”
Source: blockchain
AMBCrypto verified that SAFU Fund (Secure Asset Fund for Users) 1BAuq address actually held the 15000 BTC, which was worth $1.013 billion at the time of writing.
The exchange initially announced the conversion plan on January 30; In less than two weeks, the program was completed at an average cost of $67,000.
binance framing The move was a response to “market volatility and pressure” to support the “long-term growth” of the sector.
But the timing was also questionable. The move coincided with intense FUD against the exchange for allegedly triggering the October crash, with critics claiming that Binance was behind this bear market.
Is the final BTC bottom near?
That said, since the SAFU Fund conversion was announced, BTC has fallen further from $84,000 to $67,000, marking a further 20% decline. However, a market observer saying,
“The last time Binance did this was at around $30,000 per BTC, the price dropped like 10% and then went up 4x in the next 2 years.”
Here, it is worth noting that Binance accumulated more than 16,000 BTC between 2022 and 2024. But the explosive movement of BTC in late 2024 was fueled by Donald Trump’s victory in the US presidential election as a pro-cryptocurrency candidate. It had nothing to do with the Binance accumulation wave.
Still, if more companies and investors reach current levels, it could help stabilize prices and anchor a true market bottom in the long term.
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 whale exits in the forex market has risen more than 3% since the sharp drop to $60,000.
A Glassnode analyst aggregate that this rhymes with the bottom of the BTC market in 2022.
“This reflects the structure seen in the first half of 2022, when whales accumulated for several months and in multiple waves, before the next bull market began.”
Source: Glassnode
However, in the short term, macro headwinds could still keep the crypto asset muted. At the time of publication, BTC was trading at $68,000.
Final thoughts
- Binance has completed the conversion of the SAFU Fund into BTC and now holds 15,000 BTC, worth over $1 billion.
- The whale buying spree increased by 3% and the accumulation trend could help stabilize the market for the next bull run.
