Crypto exchange Binance announced plans to convert its $1 billion stablecoin reserve in the Secure Assets Fund For Users (SAFU) to Bitcoin (BTC). This follows prevailing negative market sentiments, with the top crypto recording massive liquidations.
Binance To Bitcoin’s Rescue
In a latest X post, the exchange said it will convert the SAFU fund’s $1 billion stablecoin reserve to strengthen Bitcoin and its long-term trajectory. The process is expected to take 30 days, with the fund subject to rebalancing during that period.
Binance will also replenish the fund in cases of losses due to high volatility. The exchange is committed to pump the fund back to $1 billion should it plunge below $800 million. Bitcoin has faced institutional and macro headwinds, giving in to bears in recent months.
With billions wiped off market cap since October, sentiment is at multi-month lows, with few positives in sight. The market’s Fear and Greed Index is at 16, well below its yearly highs. While things look gloomy for Bitcoin, enthusiasts continue to rally behind failing support levels.
For Binance, Bitcoin is the foundation assets for the entire market, making it a long-term store of value. If Bitcoin dips, the rest of the ecosystem dips with it, and vice versa. Last year, BTC reached multiple highs, and bulls shifted capital to other assets, almost triggering an altcoin season.
“By making this move, we’re embracing market cycles and standing shoulder-to-shoulder with the industry, just as we always have. This is part of our ongoing commitment to building crypto’s future. More updates soon. Binance will keep responding with real steps, driving the industry forward through openness, transparency, and long-term commitment…”
The exchange also highlighted major milestones in terms of risk control and compliance. About $1.09 billion in erroneous deposits were recovered, $131 million in illicit funds were seized, and Proof of Reserves for 45 crypto assets totaling $162.8 billion were provided.
Two hours after the Binance announcement, Justin Sun revealed that Tron will increase its Bitcoin holdings in the future. Both decisions were lauded by the community for driving momentum back in the market’s favour, even as institutional volumes declined.
At the time of writing, the Bitcoin price stands at $77,796, plummeting 7.8% yesterday and 13% this week. Meanwhile, the wider market cap also dropped 8% to $2.6 trillion.
Source: https://zycrypto.com/binances-bold-bitcoin-bet-1-billion-stablecoin-conversion-aims-to-strengthen-btcs-long-term-trajectory/
