- Binance purchased 1,315 Bitcoin for its SAFU insurance fund for the first time in two years, marking a strategic shift.
- The exchange plans to convert its $1 billion SAFU reserve from stablecoins to Bitcoin within 30 days.
- The purchase followed a weekend crash where Bitcoin’s price dipped to around $74,000 before recovering slightly.
- Retail sentiment around Bitcoin and BNB turned bearish amid high market chatter.
In a significant portfolio rebalancing move, Binance purchased 1,315 Bitcoin worth approximately $100.7 million for its SAFU insurance fund on Monday. This marks the exchange’s first Bitcoin acquisition for the fund since 2023, following its announcement last week to convert $1 billion in SAFU reserves from stablecoins.
The purchase, spotted by LookOnChain via Arkham data, began executing the previously stated 30-day conversion plan. It likely occurred because the fund’s value dipped below the $1 billion threshold due to market fluctuations, triggering a rebalance.
This strategic shift comes after Bitcoin’s price crashed to around $74,000 over the weekend, hitting November lows. Consequently, retail sentiment on platforms like Stocktwits turned “extremely bearish” for Bitcoin while chatter remained at “extremely high” levels.
Binance‘s native token, BNB, also fell 2.7%, with retail sentiment staying in “bearish” territory. Meanwhile, the broader cryptocurrency market saw over $800 million in liquidations, according to CoinGlass data, as the total market cap dropped more than 3%.
The Secure Asset Fund for Users (SAFU) was created in 2018 to protect users from unexpected events like hacks. “If the fund’s market value falls below $800 million due to BTC price fluctuations, Binance will rebalance the fund to restore its value to $1 billion,” the exchange stated last week.
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