Binance has completed the conversion of its $1 billion SAFU fund from stablecoin to Bitcoin, holding a total of 15,000 BTC, thereby confirming BTC as the exchange's core long-term reserve asset.
This move comes amid significant market volatility and psychological pressure surrounding Binance. The fact that the user protection fund has shifted to holding BTC also raises the question: has the market approached its final Dip , or are there still macroeconomic risks holding back crypto prices?
- Binance has converted its entire SAFU Fund to Bitcoin and confirmed holding 15,000 BTC , worth over $1 billion at the time of the announcement.
- The program was completed in less than two weeks, with an Medium Capital of approximately $67,000/ BTC.
- Glassnode reports a cumulative "whale" surge, with the 30-day MA of the Exchange Whale Outflow rising more than 3% after a drop to $60,000.
Binance converts SAFU Fund to Bitcoin and completes the purchase of 4,545 BTC.
Binance has completed the conversion of its $1 billion SAFU fund from stablecoin to Bitcoin, purchasing an additional 4,545 BTC in the final leg, bringing the fund's total holdings to 15,000 BTC.
The exchange stated that it purchased 4,545 BTC as the final part of the conversion program announced at the end of January. The announcement was publicly posted on Binance's social media in this official post .
"With the SAFU Fund now fully transitioning to Bitcoin, we reinforce our belief that BTC is the leading long-term reserve asset."
on-chain data shows that the SAFU (Secure Asset Fund for Users) address 1BAuq holds 15,000 BTC, valued at approximately $1.013 billion at the time the original article was mentioned. You can XEM the wallet address at Blockchain.com explorer .
An Medium Capital of around $67,000 indicates a rapid deployment speed.
Binance announced the plan on January 30th and completed it in less than two weeks, with an Medium Capital basis of approximately $67,000/ BTC.
The rapid completion of these transactions provides the market with another benchmark for "intentional" BTC buying flows in the mid-price range of $60,000–$70,000. However, it's important to note that the " Medium Capital " is not a guarantee of profit, and Bitcoin prices can still fluctuate significantly depending on liquidation, sentiment, and macroeconomic factors.
Binance says the goal is to reduce volatility impact and support long-term growth.
Binance describes the conversion of SAFU to BTC as a response to market volatility and pressure, aimed at supporting the industry's long-term growth.
This message was emphasized by Binance in another post, where the exchange “framed” the decision as a solution to increase the resilience of the crypto ecosystem against short-term shocks: XEM post .
However, the timing of the rollout is also questionable, as it coincided with a period of strong FUD targeting Binance, including allegations that the exchange was involved in a previous price drop. This psychological factor could amplify price volatility, although it doesn't itself confirm a causal relationship.
Is the Bitcoin Dip near?
There is no conclusive evidence that a Dip has formed, but data suggests that whales are accumulating shares after the dip, a pattern seen in previous Dip phases.
Since the SAFU conversion plan was announced, BTC has continued to fall from $84,000 to $67,000, equivalent to a further drop of about 20%. One market observer compared this to history, noting that the last time Binance made a similar move, the price dropped by about 10% before surging in the following years.
"The last time Binance did this was around $30,000/ BTC, the price dropped about 10% and then quadrupled in the next two years."
However, the strong surge at the end of 2024 is believed to have been heavily influenced by Donald Trump's victory in the US presidential election with his pro-crypto stance, rather than solely by Binance's accumulation. This underscores that long-term price movements often depend on multiple variables and cannot be attributed to a single factor.
Glassnode recorded a whale outflow of over 3% after the drop to $60,000.
Glassnode reports that the 30-day MA of the Exchange Whale Outflow has increased by more than 3% since the drop to $60,000, implying that whales are withdrawing BTC from the exchange at a faster rate.
An analyst at Glassnode suggests that this structure is “similar” to the first half of 2022, when whales accumulated in multiple phases before the market entered its next bull cycle. This assessment is Chia in this post .
"This mirrors the structure in the first half of 2022, when whales accumulated for several months and in multiple waves, before the next Bull market began."
While on-chain signals may support the bottoming- Dip argument, short-term risks remain from macroeconomic headwinds that could keep crypto assets constrained. At the time of writing, BTC was trading around $68,000.
Conclusion: The SAFU fund's "all-in BTC" strategy may provide psychological support, but macroeconomic factors will ultimately determine the short-term trend.
Binance's conversion of all SAFU to BTC reinforces the long-term reserve narrative, while Glassnode data suggests whales are accumulating, but the short-term direction remains dependent on the macroeconomic context and market flows.
- Binance has completed the conversion of the SAFU Fund to Bitcoin and now holds 15,000 BTC, worth over $1 billion at the time mentioned.
- The increasing accumulation of whales (the 30-day MA of Exchange Whale Outflow is up more than 3%) could contribute to price stability if the trend continues.
Frequently Asked Questions
What is Binance's SAFU fund?
SAFU (Secure Asset Fund for Users) is a user protection fund established by Binance to increase compensation in risky situations. In a recent update, Binance has migrated the entire fund portfolio from stablecoins to Bitcoin.
How much BTC does Binance hold in the SAFU Fund?
According to the information provided, the SAFU Foundation holds 15,000 BTC. Binance announced that it has purchased an additional 4,545 BTC as the final step to complete the conversion program.
Why did Binance convert its stablecoin to Bitcoin?
Binance stated that the move was in response to market volatility and pressure, while reaffirming its belief that Bitcoin is the leading long-term reserve asset.
Does SAFU's switch to BTC mean Bitcoin has bottomed Dip ?
No definitive conclusions can be drawn. on-chain data from Glassnode shows signs of whale accumulation (an indicator of a rise of over 3%), which could support a Dip scenario, but macroeconomic risks could still cause price volatility.
