Binance Buys $100M Bitcoin Dip, Kicking Off $1B SAFU Conversion
Binance accomplished the primary $100 million Bitcoin buy for its SAFU fund conversion on February 2, executing a transaction of 1,350 BTC at roughly $77,873 per coin because the crypto traded close to nine-month lows.
The alternate announced it seeks to finish the complete $1 billion conversion inside 30 days of its unique January 30 announcement, responding to mounting group criticism following October’s $19 billion liquidation occasion.
The transfer comes as Bitcoin plunged below $80,000 over the weekend, triggering over $2.5 billion in liquidations and leaving the common U.S. spot Bitcoin ETF investor underwater with buy costs round $87,830 whereas the asset trades close to $75,000.
Blockchain data confirmed the transaction moved funds from 22 Binance pockets addresses to a delegated SAFU deal with holding 1,315 BTC, with the alternate paying minimal charges of 5.017 satoshis per digital byte.
Industry Leaders Clash Over October Crash Root Cause
OKX founder Star Xu reignited controversy surrounding the October 10 crash by publicly attributing the occasion to “irresponsible advertising campaigns by sure firms,” particularly concentrating on Binance’s 12% APY marketing campaign on USDe that allowed the artificial greenback to function collateral with the identical therapy as USDT and USDC.
“Many trade individuals imagine the harm was extra extreme than the FTX collapse,” Xu said, arguing that customers changing stablecoins into USDe and looping leverage created synthetic APYs of “24%, 36%, and even 70%+, extensively perceived as ‘low danger’ just because they had been supplied by a significant platform.“
Dragonfly Capital companion Haseeb Qureshi instantly countered with detailed order guide evaluation, stating, “this story is candidly ridiculous.“
He famous that “BTC bottomed a full half-hour earlier than USDe worth was affected on Binance,” including that “USDe worth diverged ONLY on Binance, it didn’t diverge on different venues” whereas “the liquidation spiral was taking place all over the place.“
Qureshi dismissed Xu’s timeline as “clearly misplacing trigger and impact,” arguing that one of the best clarification is that Trump’s tariff threats brought on API failures that prevented market makers from rebalancing stock throughout exchanges.
Ethena founder Guy Young supported Qureshi’s evaluation, stating, “knowledge under exhibits clearly USDe had a worth discrepancy on Binance orderbooks a full half-hour after BTC had bottomed from the crash.“
Xu responded by reiterating that the preliminary market shock would have stabilized “absent the USDe leverage loop,” sustaining that “cascading liquidations weren’t inevitable—they had been amplified by structural leverage.”
DWF Labs head Andrei Grachev defended Binance’s position, writing “largest alternate = largest occasions, neither unhealthy or good,” whereas Wintermute additionally criticized Cathie Wood for calling the occasion a “software program glitch” when it was “very clearly” a “flash crash on mega leveraged market on illiquid Friday night time pushed by macro information.“
Crypto market magnificence is that it is extremely unstable, and ofc it s nice if costs go up, however in addition they could crash and it occurs each ~6 months. And that is precisely occurred on day 10/10, when the sell-off that occurred bcz of Trump tariffs smashed liquidity of USDe and brought on the… https://t.co/JyGKll4ZsJ
— Andrei Grachev
$FF (@ag_dwf) January 29, 2026
Bitcoin Tests Key Support as Bearish Predictions Mount
Bitcoin dropped under $80,000 following confirmation that Kevin Warsh will turn out to be the subsequent Federal Reserve chair, with QCP Asia reporting the asset “briefly fell to round $74,500 after breaking key technical help” whereas ether dropped under $2,170.
Galaxy’s Alex Thorn additionally confirmed that U.S.-listed Bitcoin ETFs now maintain roughly 1.28 million BTC at a mean buy worth of $87,830, stating “this implies the common Bitcoin ETF buy is underwater” after the merchandise recorded $2.8 billion in web redemptions over two weeks.
Given the rising bearish occasions and sentiment, Polymarket participants now assign a 71% probability that Bitcoin will drop under $65,000 in 2026, aligning with analyst warnings about key help zones.
Polymarket assigns 71% chance Bitcoin falls under $65,000 as analysts establish crucial help ranges close to $62,000.#Polymarket #Bitcoinhttps://t.co/AvzOSdDWHx
— Cryptonews.com (@cryptonews) February 2, 2026
CryptoQuant’s Julio Moreno significantly projected potential lows “between $56,000 and $60,000 based mostly on Bitcoin’s realized worth evaluation,” stating “individuals proceed to assume this can be a ‘bull market’ correction. It’s not.“
Strategy’s 712,647 BTC place now carries unrealized losses exceeding $900 million after Bitcoin dropped under the corporate’s $76,037 common value foundation.
Despite that, Saylor bought an additional 855 BTC for about $75.3 million, at a mean buy worth of roughly $87,974 per Bitcoin.
For now, CryptoQuant data exhibits elevated volatility indicators on Binance with vary z30 climbing to round +3.72, a studying that “has usually preceded sturdy worth actions, both within the type of sharp upward breakouts or speedy downward strikes pushed by widespread liquidation.“
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