Binance has announced the conversion of the Secure Asset Fund for Users (SAFU) fund’s $1 billion stablecoin reserve into Bitcoin, with a target completion within 30 days. At Bitcoin’s current spot near $80,000, the move corresponds to roughly 12,500 BTC on paper, though Binance plans a slow, strategic accumulation rather than an all-at-once purchase to avoid jolting the market. The firm will rebalance the fund back to $1 billion if its value dips below $800 million due to price swings, underscoring a focus on gradual Bitcoin accumulation rather than a fixed BTC count.
Market participants offered mixed reactions to the plan as Bitcoin dominance approaches the 60% mark, testing its hedge status against metals. Some critics characterized the timing as calculated, arguing that a dip in BTC to around $80k makes the maneuver ripe for a “buy the dip” setup. Conversely, others view it as a necessary catalyst to restore confidence in BTC as the market’s leading inflow driver, with notable interest from figures like Justin Sun who reportedly aims to add to his Bitcoin holdings.
From Binance’s perspective, the move emphasizes Bitcoin as the primary driver of market flows and could push BTC.D past 60% if it endures. If BTC.D clears that level, it could reinforce Bitcoin’s hedge narrative against metals; if it falters, the case for Bitcoin as a store of value could weaken further. In any case, the market’s reaction will determine whether BTC dominance strengthens or remains fragile amid ongoing macro volatility.
Leave a Reply