Binance completes $1B Bitcoin conversion for SAFU emergency fund

2 hours ago

Binance completed the $1 cardinal Bitcoin conversion for its exigency fund, committing to holding Bitcoin arsenic its halfway reserve asset.

Binance purchased different $304 cardinal worthy of Bitcoin (BTC) connected Thursday, completing the conversion of $1 cardinal successful Bitcoin for its Secure Asset Fund for Users (SAFU) wallet, according to Arkham data.

The money present holds 15,000 Bitcoin, worthy implicit $1 billion, acquired astatine an mean aggregate outgo ground of $67,000 per coin, Binance said successful a Thursday X post.

“With SAFU Fund present afloat successful Bitcoin, we reenforce our content successful BTC arsenic the premier semipermanent reserve asset.”

The past tranche of BTC came 3 days aft Binance’s erstwhile $300 million acquisition connected Monday.

The speech first announced it would convert its $1 cardinal idiosyncratic extortion money into Bitcoin connected Jan. 30, initially pledging a 30-day model for the acquisitions, which were completed successful little than 2 weeks.

The speech said it would rebalance the money if volatility pushes its worth beneath $800 million.

Crypto capitalist sentiment plunges to lowest levels connected record

The conversion comes arsenic broader marketplace sentiment remains profoundly negative.

Sentiment took different deed pursuing Bitcoin’s little correction beneath $60,000 connected Feb. 5, plunging to 5 connected Thursday — the lowest speechmaking connected grounds — signaling utmost fearfulness among investors, according to information from alternative.me.

The scale is simply a multifactorial measurement of crypto marketplace sentiment.

The industry’s starring traders by returns, tracked arsenic “smart money,” are besides hedging for much crypto marketplace downside.

Smart wealth traders were nett abbreviated connected Bitcoin for a cumulative $105 million, and nett abbreviated connected astir of the starring cryptocurrencies but the Avalanche (AVAX) token, which saw $10.5 cardinal successful nett cumulative agelong positioning, according to crypto quality level Nansen.

Bitcoin’s correction besides took a important proviso of tokens astatine a nonaccomplishment equaling to 16% of Bitcoin’s marketplace cap, marking the highest symptom constituent seen successful markets since the implosion of algorithmic stablecoin issuer Terra successful May 2022, wrote Glassnode successful a Monday X post.

Yet successful a metallic lining to the correction, the marketplace operation is showing aboriginal signs of stabilization, according to Dessislava Ianeva, dispatch expert astatine integer plus level Nexo.

“Derivative positioning remains cautious. Funding rates are neutral to somewhat negative, reflecting subdued leverage demand, portion unfastened involvement successful autochthonal BTC presumption has returned to early-February levels, suggesting stabilization alternatively than a renewed enlargement phase,” the expert told Cointelegraph.

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