Binance Completes $1 Billion Bitcoin Conversion For SAFU Fund

Cryptocurrency exchange Binance confirmed it has finished converting its emergency protection fund entirely into Bitcoin after additional purchases this week. The company acquired another $304 million worth of Bitcoin, bringing the Secure Asset Fund for Users holdings to approximately 15,000 BTC. The coins were accumulated at an average cost basis near $67,000 per token according to company statements. “With SAFU Fund now fully in Bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset.” The final acquisition occurred only three days after a previous $300 million purchase, completing the planned conversion far earlier than the 30-day target window. Binance said it will rebalance the fund if volatility reduces its value below $800 million. Market Sentiment Remains Extremely Weak The move comes during a period of negative crypto sentiment following a recent correction that briefly pushed Bitcoin below $60,000. The market fear and greed indicator dropped to five, the lowest reading ever recorded and a sign of extreme investor caution. Data shows large traders identified as smart money currently hold significant net short positions across major cryptocurrencies. Only Avalanche displayed meaningful net long exposure among leading tokens tracked in derivatives markets. Glassnode data indicated the downturn forced a large portion of Bitcoin supply into unrealized losses, echoing stress levels seen during the Terra collapse in 2022. Early Stabilization Signals Appear Despite pessimistic positioning, analysts see tentative signs the market structure may be stabilizing rather than entering a deeper decline. Derivative funding rates have turned neutral to slightly negative, suggesting leverage demand has cooled considerably. Open interest measured in Bitcoin terms has returned to early-month levels instead of expanding rapidly. Researchers interpret this as consolidation rather than renewed speculative expansion in the short term. Binance’s decision to hold reserves in Bitcoin therefore reflects confidence in long-term value despite short-term volatility pressures.