Binance completed the $1 billion Bitcoin conversion for its emergency fund, committing to holding Bitcoin as its core reserve asset.
Binance purchased another $304 million worth of Bitcoin (BTC) on Thursday, completing the conversion of $1 billion in Bitcoin for its Secure Asset Fund for Users (SAFU) wallet, according to Arkham data.
The fund now holds 15,000 Bitcoin, worth over $1 billion, acquired at an average aggregate cost basis of $67,000 per coin, Binance said in a Thursday X post.
“With SAFU Fund now fully in Bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset.”
The last tranche of BTC came three days after Binance’s previous $300 million acquisition on Monday.
Binance SAFU Fund wallet. Source: Arkham
Related: Bitcoin’s $60K crash may mark halfway point of bear market: Kaiko
The exchange first announced it would convert its $1 billion user protection fund into Bitcoin on Jan. 30, initially pledging a 30-day window for the acquisitions, which were completed in less than two weeks.
The exchange said it would rebalance the fund if volatility pushes its value below $800 million.
Related: Bitcoin dips to $60K, TRM Labs becomes crypto unicorn: Finance Redefined
Crypto investor sentiment plunges to lowest levels on record
The conversion comes as broader market sentiment remains deeply negative.
Sentiment took another hit following Bitcoin’s brief correction below $60,000 on Feb. 5, plunging to five on Thursday — the lowest reading on record — signaling extreme fear among investors, according to data from alternative.me.
The index is a multifactorial measure of crypto market sentiment.
Fear & greed index. Source: Alternative.me
The industry’s leading traders by returns, tracked as “smart money,” are also hedging for more crypto market downside.
According to crypto intelligence platform Nansen, smart-money traders held a cumulative $105 million net short position in Bitcoin and were net short across most major cryptocurrencies, with Avalanche (AVAX) the only notable exception, recording $10.5 million in net long exposure.
Smart money trader positions through the…..
