Key Notes
- Binance said it will actively rebalance the SAFU fund if its value falls below $800 million due to Bitcoin price volatility.
- Binance said this move is part of its broader commitment to industry stability and user protection.
- Bitcoin’s price fell toward $82,000, while Deribit’s DVOL rose above 44, marking its highest level since November.
On Jan. 30, crypto exchange Binance issued an open letter to the community. The company said it would move $1 billion from its user protection fund, currently held in stablecoins, to Bitcoin
BTC
$82 114
24h volatility:
6.5%
Market cap:
$1.64 T
Vol. 24h:
$90.86 B
over the next 30 days.
The move signals strong confidence in BTC, even as the cryptocurrency faces a sharp price correction.
Binance to Convert $1B SAFU Fund Into Bitcoin
Crypto exchange Binance announced that it plans to move the $1 billion stablecoin reserves held in its Secure Asset Fund for Users (SAFU) into Bitcoin.
The largest crypto exchange has reinforced its view that BTC is the core asset of the crypto ecosystem and a source of long-term value.
Binance said the conversion to Bitcoin will be completed within 30 days of the announcement.
The exchange also confirmed it will continue investing in the broader crypto ecosystem. This comes as Bitcoin’s price drops to around $82,000 amid a broader market correction.
Binance also introduced a new rebalancing framework for the SAFU fund. If the fund’s market value drops below $800 million due to Bitcoin price volatility, the company will adjust the portfolio to restore it to $1 billion.
The exchange called this move part of its long-term commitment to industry development.
Binance added that it will continue to provide updates to the community as the process moves forward.
Binance founder Changpeng Zhao recently said that he expects Bitcoin to enter a potential “super-cycle” in 2026, noting that pro-crypto US policies could alter its usual market rhythm
Bitcoin Price Shows Largest Volatility Increase Since November
Following the massive crypto market sell-off on Jan. 29, Bitcoin’s price has once again come under pressure, slipping to $82,000.
Deribit’s Bitcoin volatility index, also known as DVOL, climbed sharply, rising from about 37 to above 44, signaling a spike in market uncertainty.
DVOL measures the expected volatility of Bitcoin over the next 30 days based on options pricing.
An increase in DVOL shows that traders are paying more for downside protection, which raises options premiums and reflects heightened market anxiety.
Bitcoin options continue to dominate derivatives exposure, accounting for $7.54 billion in notional value, according to market data.
Bitcoin options expiry chart. | Source: Deribit
Bitcoin is currently trading near $82,761, well below the $90,000 “max pain” level for options expiry.
Despite the recent price pullback, derivatives positioning remains structurally bullish.
Open interest in call options stands at 61,437 contracts, compared with 29,648 put contracts, pushing the put-to-call ratio down to 0.48. Total open interest across Bitcoin options is 91,085 contracts.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
