Binance has officially completed the $1 billion Bitcoin conversion for its Secure Asset Fund for Users (SAFU), reinforcing BTC as its core reserve asset.
🔹 Latest purchase: $304M in BTC
🔹 Total holdings: 15,000 BTC
🔹 Average cost basis: ~$67,000 per BTC
Binance stated:
“With SAFU Fund now fully in Bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset.”
The conversion, initially planned over 30 days, was completed in under two weeks. If volatility pushes the fund below $800M, Binance will rebalance accordingly.
🔥 Meanwhile, Market Sentiment Hits Record Lows
• Bitcoin briefly dropped below $60K
• Fear index plunged to its lowest level on record
• “Smart money” traders currently hold $105M net short in BTC
• Broad net shorts across major alts (except AVAX with modest net long exposure)
On-chain data shows 16% of BTC market cap moved into unrealized loss during the correction — the most intense pain since the Terra collapse (May 2022).
⚖️ Silver Lining?
Derivatives positioning is stabilizing:
• Funding rates neutral to slightly negative
• Open interest reset to early-February levels
This suggests stabilization, not aggressive expansion — yet.
Big Picture:
Binance doubling down on Bitcoin as a reserve asset during extreme fear sends a strong signal.
Fear is high. Positioning is defensive.
But structurally, early signs of stabilization are emerging.
