Binance Completes $1B Bitcoin Conversion for SAFU Fund

Binance accomplished the $1 billion Bitcoin conversion for its emergency fund, committing to holding Bitcoin as its core reserve asset.

Binance bought one other $304 million value of Bitcoin (BTC) on Thursday, finishing the conversion of $1 billion in Bitcoin for its Safe Asset Fund for Customers (SAFU) pockets, according to Arkham knowledge.

The fund now holds 15,000 Bitcoin, value over $1 billion, acquired at a mean mixture value foundation of $67,000 per coin, Binance mentioned in a Thursday X post.

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

The final tranche of BTC got here three days after Binance’s previous $300 million acquisition on Monday.

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The alternate first announced it would convert its $1 billion consumer safety fund into Bitcoin on Jan. 30, initially pledging a 30-day window for the acquisitions, which have been accomplished in lower than two weeks.

The alternate mentioned it will rebalance the fund if volatility pushes its worth beneath $800 million.

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Crypto investor sentiment plunges to lowest ranges on report

The conversion comes as broader market sentiment stays deeply adverse.

Sentiment took one other hit following Bitcoin’s transient correction beneath $60,000 on Feb. 5, plunging to 5 on Thursday — the bottom studying on report — signaling excessive worry amongst traders, according to knowledge from alternative.me.

The index is a multifactorial measure of crypto market sentiment.

The trade’s main merchants by returns, tracked as “good cash,” are additionally hedging for extra crypto market draw back.

In line with crypto intelligence platform Nansen, smart-money merchants held a cumulative $105 million web brief place in Bitcoin and have been web brief throughout most main cryptocurrencies, with Avalanche (AVAX) the one notable exception, recording $10.5 million in web lengthy publicity.

Bitcoin’s correction additionally took a big provide of tokens at a loss equaling to 16% of Bitcoin’s market cap, marking the best ache level seen in markets for the reason that implosion of algorithmic stablecoin issuer Terra in Could 2022, wrote Glassnode in a Monday X post.

But in a silver lining to the correction, the market construction is exhibiting early indicators of stabilization, in accordance with Dessislava Ianeva, dispatch analyst at digital asset platform Nexo.

“By-product positioning stays cautious. Funding charges are impartial to barely adverse, reflecting subdued leverage demand, whereas open curiosity in native BTC phrases has returned to early-February ranges, suggesting stabilization quite than a renewed growth section,” the analyst informed Cointelegraph.

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