Binance has purchased an additional $100 million in Bitcoin for its user protection fund, signaling confidence amid a market downturn. This marks the second major BTC acquisition this week as part of a plan to convert up to $1 billion into the cryptocurrency. Concurrently, Bitcoin’s price decline has pushed the average ETF investor into unrealized losses for the first time in over 18 months.
Binance added 1,315 Bitcoin, valued at $100.42 million, to its Secure Asset Fund for Users (SAFU) on Tuesday. This strengthens user protection during ongoing market volatility according to the exchange.
The purchase is part of a plan to convert a stablecoin reserve of up to $1 billion into Bitcoin within 30 days. “We’re continuing to acquire Bitcoin for the SAFU fund, and we are committed to completing the conversion of the fund within 30 days of our original announcement,” Binance stated.
Bitcoin’s price continued to drop, falling 3.57% to $76,052 according to CoinMarketCap data. The asset briefly traded near $73,000, though its 24-hour trading volume rose by 17.8% to $67.1 billion.
Derivatives data from Coinglass shows futures trading volume increased by 48.9% to $109.8 billion. However, total open interest declined 1.59%, indicating traders are closing leveraged positions.
Market analyst Ali Charts stated Bitcoin’s price has fallen below the average ETF cost basis of $82,600. This marks the first time in over 18 months that the average ETF investor is in an unrealized loss position.
