Binance adds $300M in Bitcoin to SAFU reserve during market dip

2 hours ago

Binance added different $300 cardinal worthy of Bitcoin to its exigency reserves connected Monday, continuing its experimentation with a Bitcoin-backed extortion money arsenic markets stay nether pressure.

Binance bought different 4,225 Bitcoin (BTC) worthy $300 cardinal for its Secure Asset Fund for Users (SAFU) wallet, which holds its exigency reserves, according to blockchain information level Arkham.

The acquisition lifts the fund’s Bitcoin holdings to much than $720 cardinal astatine existent prices.

“We’re continuing to get #Bitcoin for the SAFU fund, aiming to implicit conversion of the money wrong 30 days of our archetypal announcement,” wrote Binance successful a Monday X post.

While the acquisition is simply a motion of assurance successful Bitcoin by the world’s largest exchange, it besides exposes Binance’s exigency money to downside volatility of Bitcoin’s terms swings, which could trim the fund’s full value.

Binance archetypal announced shifting $1 cardinal of its idiosyncratic extortion money into Bitcoin connected Jan. 30, framing it arsenic an look of its condemnation successful Bitcoin’s semipermanent prospects arsenic the starring crypto asset.

Binance said it would rebalance the money backmost up to $1 billon if the marketplace volatility drove its worth beneath $800 million.

Fragile sentiment weighs connected markets

Binance’s money conversion occurs amid a wider crypto marketplace correction, which saw Bitcoin’s terms descend to $59,930 connected Friday, a terms level past seen successful October 2024 earlier the re-election of US President Donald Trump, according to TradingView.

Meanwhile, Bitcoin capitalist sentiment remains “fragile,” threatening much downside successful the lack of affirmative marketplace catalysts, Hina Sattar Joshi, manager for integer assets astatine liquidity and information solutions level TP ICAP, told Cointelegraph.

“Sentiment is presently precise fragile, with investors anchoring themselves to the accepted four-year Bitcoin cycle, successful which Bitcoin’s terms historically follows a recurring signifier of ‘boom and bust.’”

The industry’s champion traders by returns, tracked arsenic “smart money,” besides proceed betting connected much crypto marketplace downside.

Smart wealth traders added $7.38 cardinal worthy of leveraged abbreviated positions and were nett abbreviated connected Bitcoin for a cumulative $109 million, according to crypto quality level Nansen.

Smart wealth traders were betting connected the terms diminution of astir of the starring cryptocurrencies, but Avalanche (AVAX), which had $7.38 cardinal successful cumulative agelong positions.

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