Why Binance SAFU Fund Conversions Don’t Lift Bitcoin Price

Binance has completed two $100 million batches of stablecoin-to-Bitcoin conversions from its Secure Asset Fund for Users (SAFU), totaling $200 million or 20% of its $1 billion target.

The conversions are part of a 30-day plan announced on January 30, 2026, which aims to shift the SAFU Fund’s reserves from stablecoins into Bitcoin while maintaining a protective floor for user funds.

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Binance SAFU Fund Conversions: $200 Million In, Bitcoin Price Shows Little Reaction

The first batch, announced and executed on February 2, involved 1,350 BTC, valued at about $100.7 million at the time, with Bitcoin trading near $77,000.

The second batch, announced today, February 4, converted another $100 million in stablecoins to approximately 1,349.9 BTC.

These conversions were sent to the SAFU Fund’s publicly disclosed Bitcoin address: 1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD.

Despite the $200 million inflows, Bitcoin has remained largely flat, hovering around $76,300–$76,700 as of February 4.

So, what explains the muted reaction?

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The acquisition pace averages roughly $33 million per day if the plan stays on track. It represents gradual accumulation rather than a market-shaking purchase.

Additionally, on-chain data suggests that much of the conversion is internal reclassification. They move existing Binance BTC holdings into the SAFU wallet.

This is not equivalent to aggressive open-market buys, where Binance would purchase new BTC from the spot market, adding fresh demand and potentially driving up prices immediately.

This provides long-term conviction in holding but limited immediate buying pressure in spot markets.

Broader market forces also play a role. Post-2025 corrections, liquidation cascades, and ongoing macro volatility have kept downward pressure dominant. This likely offsets any “buy-the-dip” effect from the SAFU conversions.

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Binance’s SAFU moves, while structurally supportive, are defensive rather than a literal quantitative easing (QE)- style intervention.

The fund includes a floor mechanism: if volatility pushes the SAFU value below $800 million, Binance will top it up to $1 billion, mimicking a price-support strategy.

Long-term, the structured accumulation signals strong institutional confidence in Bitcoin. By converting a traditionally stable, low-risk reserve into BTC, Binance positions itself as a quasi-“crypto central bank,” quietly stacking reserves while signaling commitment to Bitcoin as a reserve asset.

Community sentiment on X (Twitter) frames the moves as “central bank-like support” or “structural demand,” highlighting potential upside if more batches are executed and volatility stabilizes.

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With 80% of the SAFU Fund still to convert ($800 million), the gradual, predictable inflows could establish a solid support floor, providing downside protection while sustaining steady demand for Bitcoin over the coming weeks.

For now, the market reaction is subdued, but the strategy’s structural bullishness remains clear, coming only days after Binance’s community woes.

While short-term price effects have been minimal, the ongoing strategy reflects a calculated long-term approach to Bitcoin exposure.