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Binance Buys $100M Bitcoin Dip, Kicking Off $1B SAFU Conversion

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Binance completed the first $100 million Bitcoin purchase for its SAFU fund conversion on February 2, executing a transaction of 1,350 BTC at approximately $77,873 per coin as the crypto traded near nine-month lows.

The exchange announced it seeks to complete the full $1 billion conversion within 30 days of its original January 30 announcement, responding to mounting community criticism following October’s $19 billion liquidation event.

The move comes as Bitcoin plunged below $80,000 over the weekend, triggering over $2.5 billion in liquidations and leaving the average U.S. spot Bitcoin ETF investor underwater with purchase prices around $87,830 while the asset trades near $75,000.

Blockchain data confirmed the transaction moved funds from 22 Binance wallet addresses to a designated SAFU address holding 1,315 BTC, with the exchange paying minimal fees of 5.017 satoshis per virtual byte.

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Industry Leaders Clash Over October Crash Root Cause

OKX founder Star Xu reignited controversy surrounding the October 10 crash by publicly attributing the event to “irresponsible marketing campaigns by certain companies,” specifically targeting Binance’s 12% APY campaign on USDe that allowed the synthetic dollar to serve as collateral with the same treatment as USDT and USDC.

Many industry participants believe the damage was more severe than the FTX collapse,” Xu stated, arguing that users converting stablecoins into USDe and looping leverage created artificial APYs of “24%, 36%, and even 70%+, widely perceived as ‘low risk’ simply because they were offered by a major platform.

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Dragonfly Capital partner Haseeb Qureshi immediately countered with detailed order book analysis, stating, “this story is candidly ridiculous.

He noted that “BTC bottomed a full 30 minutes before USDe price was affected on Binance,” adding that “USDe price diverged ONLY on Binance, it did not diverge on other venues” while “the liquidation spiral was happening everywhere.

Qureshi dismissed Xu’s timeline as “clearly misplacing cause and effect,” arguing that the best explanation is that Trump’s tariff threats caused API failures that prevented market makers from rebalancing inventory across exchanges.

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Ethena founder Guy Young supported Qureshi’s analysis, stating, “data below shows clearly USDe had a price discrepancy on Binance orderbooks a full 30 minutes after BTC had bottomed from the crash.

Xu responded by reiterating that the initial market shock would have stabilized “absent the USDe leverage loop,” maintaining that “cascading liquidations were not inevitable—they were amplified by structural leverage.

DWF Labs head Andrei Grachev defended Binance’s role, writing “biggest exchange = biggest events, neither bad or good,” while Wintermute also criticized Cathie Wood for calling the event a “software glitch” when it was “very obviously” a “flash crash on mega leveraged market on illiquid Friday night driven by macro news.

Bitcoin Tests Key Support as Bearish Predictions Mount

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Bitcoin dropped below $80,000 following confirmation that Kevin Warsh will become the next Federal Reserve chair, with QCP Asia reporting the asset “briefly fell to around $74,500 after breaking key technical support” while ether dropped below $2,170.

Galaxy’s Alex Thorn also confirmed that U.S.-listed Bitcoin ETFs now hold approximately 1.28 million BTC at an average purchase price of $87,830, stating “this means the average Bitcoin ETF purchase is underwater” after the products recorded $2.8 billion in net redemptions over two weeks.

Given the growing bearish events and sentiment, Polymarket participants now assign a 71% probability that Bitcoin will drop below $65,000 in 2026, aligning with analyst warnings about key support zones.

CryptoQuant’s Julio Moreno particularly projected potential lows “between $56,000 and $60,000 based on Bitcoin’s realized price analysis,” stating “people continue to think this is a ‘bull market’ correction. It’s not.

Strategy’s 712,647 BTC position now carries unrealized losses exceeding $900 million after Bitcoin dropped below the company’s $76,037 average cost basis.

Despite that, Saylor bought an additional 855 BTC for approximately $75.3 million, at an average purchase price of roughly $87,974 per Bitcoin.

For now, CryptoQuant data shows elevated volatility signs on Binance with range z30 climbing to around +3.72, a reading that “has often preceded strong price movements, either in the form of sharp upward breakouts or rapid downward moves driven by widespread liquidation.

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XRP Crypto Falls to $1.31 After Failed Breakout as Liquidity Dries Up

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XRP Crypto slipped to $1.31 after a hard rejection at $1.35 left traders with little to show from a breakout attempt that briefly looked credible.

The 2% drop is secondary – what matters is the combination of that ceiling rejection and visibly thinning order book depth, a setup that historically precedes sharper directional moves.

The failed push came off a March 31 high of $1.37, with XRP unable to clear $1.40 resistance and grinding lower through a $1.28–$1.33 range ever since.

That recent run toward $1.35 now looks like a distribution zone rather than a launchpad, and the market cap sits at $80.6 billion with 24-hour volume at just $2.01 billion – reduced participation that confirms the liquidity problem is real. The chart now forces a binary question: does $1.28 hold, or does the next support at $1.15 come into play faster than bulls expect?

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XRP Crypto, Reclaim $1.35 or Retreat to $1.15?

XRP Crypto is trading below both its 50-day EMA ($1.38) and 200-day EMA ($1.88), with price pinned inside a descending channel on the 4-hour chart where both the 50-SMA and 200-SMA act as overhead ceiling.

Daily RSI reads 38 – weak momentum, but not yet in oversold territory, which means there’s no technical floor from that indicator alone. MACD is negative and expanding downward, removing any near-term momentum argument.

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Key resistances sit at $1.3500; load-bearing supports are $1.3000 and $1.2698. The $1.28 level has held since February, aligning with the 23.6% Fibonacci retracement – below it, holder support thins materially until $1.15.

Source: TradingView

The bull case requires a clean reclaim of $1.35 on volume – not a wick, a close – followed by a hold above the 50-day EMA at $1.38.

That sequence opens $1.45 and, with a catalyst, $1.60 tied to regulatory progress on the CLARITY Act, which carries a 63% probability of passing in 2026 per current prediction markets. Long-term analysts maintain structurally bullish frameworks, but those scenarios require macro conditions – FOMC dovishness, easing geopolitical tensions – that aren’t present right now.

The bear case activates on a confirmed daily close below $1.28. Analysts are flagging $1.15 as the next meaningful support, with more aggressive targets at $0.80 contingent on oil above $100 and Fed rate holds through Q2.

The uncomfortable reality is that XRP is down nearly 30% year-to-date and 64% from its $3.65 all-time high, and every bounce has been sold. The single most important level: $1.28. Hold it and the range stays intact; lose it and $1.15 becomes the next anchor.

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

South Korea has ordered all crypto exchanges to reconcile their internal ledgers with actual asset holdings every five minutes after an inspection uncovered weaknesses in internal controls.

The directive was announced on Monday by the Financial Services Commission (FSC) after a meeting with top crypto exchanges and the Digital Asset Exchange Alliance (DAXA), during which they discussed the findings of an emergency inspection triggered by the Bithumb payout incident.

The inspection found that three of the country’s five major exchanges were reconciling balances only once every 24 hours, limiting their ability to respond quickly to discrepancies. Systems designed to halt trading during major mismatches were also found to be insufficient, raising concerns about how exchanges would handle large-scale errors.

In February, Bithumb mistakenly distributed 620,000 Bitcoin (BTC) to 249 users during a promotional event. The exchange later announced that it recovered 99.7% of the funds the same day. The remaining 0.3%, 1,788 BTC that had already been sold, was covered using company reserves.

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Related: Bithumb seeks to reappoint CEO despite recent controversies: Report

South Korea mandates five-minute asset checks

Under the new measures, exchanges must implement automated ledger-to-wallet reconciliation systems operating on a five-minute cycle. They will also be required to introduce defined criteria for triggering automatic transaction halts in the event of significant discrepancies.

Beyond reconciliation, regulators are pushing for sweeping changes to internal operations. High-risk processes like promotional payouts will require stronger oversight, including third-party cross-checks and multi-level approval systems. Exchanges will also need to separate high-risk accounts and implement automated verification tools for payments.

Top Korean crypto exchanges. Source: CoinGecko

Furthermore, external audits will shift from quarterly to monthly, while disclosures will expand to include detailed asset balances by wallet and ledger.

“The financial authorities and the DAXA plan to complete the rule changes needed to implement the improvement measures within April this year,” the FSC wrote.

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Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

Bithumb delays IPO to post-2028

Last week, Bithumb announced it is now targeting an IPO after 2028, marking another delay from its earlier 2025 plans as it works through restructuring and regulatory pressure. The exchange said it will focus on strengthening accounting policies and internal controls through 2027, following an advisory agreement with Samjong KPMG.

Meanwhile, Naver Financial has also delayed its planned share swap with Dunamu by about three months, now targeting a shareholder vote on Aug. 18 and completion by Sept. 30.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

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