Traders Debate SAFU Fund’s Market Signal After $734 Million Bitcoin Buy

Binance converted $734 million into Bitcoin as part of a plan to shift SAFU reserves, bringing the fund’s holdings to 10,455 BTC. The move is one stage of a broader effort to convert a $1 billion reserve into Bitcoin over a 30-day period. Early batches included roughly 1,315 BTC and 3,600 BTC, followed by a 4,225 BTC purchase that Binance confirmed as about $300 million in stablecoins.

Some traders see those reallocations as a market indicator. They note that after Binance converted about $1 billion of SAFU into BTC, ETH and BNB in March 2023, bitcoin rose roughly 250% and Ethereum climbed about 160% over the following year. Arkham data also shows the SAFU fund’s total value topped $1.2 billion in March 2024 while bitcoin neared a cycle high, prompting comparisons between allocation shifts and past turning points.

Others argue the moves may simply reflect treasury management.

binance, safu, bitcoin, ethereum, arkham, bnb, stablecoins, reallocations, treasury management, march 2024