Binance will move $1 billion from SAFU into bitcoin as the market sharply declines

Binance announced that it will fully convert the $1 billion reserves of its SAFU insurance fund into bitcoin within the next 30 days. The decision comes amid a sharp deterioration in market sentiment: the bitcoin price fell 7% in 24 hours to $82,000 – its lowest level since November.

In an open letter, the exchange said the move reflects its long-term confidence in bitcoin and is intended to support the industry during periods of market turbulence. SAFU remains a core mechanism for protecting users from unexpected incidents, including hacks and technical failures.

To reduce the impact of volatility, Binance will monitor the fund’s market value and rebalance as needed. If SAFU’s value falls below $800 million, the exchange will replenish it back to $1 billion. This mechanism is designed to keep the fund stable regardless of BTC fluctuations.

Bitcoin’s decline came as global sentiment shifted into risk-off mode. Investors are rotating into gold and silver, while geopolitical pressures – including renewed U.S. tariff initiatives – continue to weigh on the crypto market. Ongoing outflows from spot bitcoin ETFs are also contributing to downward pressure.

Over the past 24 hours, roughly $1.7 billion in derivatives positions were liquidated across the market, including $1.59 billion in longs. Ethereum fell 8.23% to $2,707, XRP dropped nearly 8% to $1.74, and Solana slid to $113.45.

Binance emphasized that this step is not only aimed at supporting the market but also reflects an updated approach to SAFU management. The exchange expects that shifting the fund into bitcoin will create a more transparent and verifiable reserve structure, aligning with its long-term strategy to strengthen user trust.

As volatility intensifies, the crypto market remains under pressure, and bitcoin’s next moves will largely depend on macroeconomic factors and investor response to actions taken by major industry players.