Binance Makes Gigantic Bitcoin Purchase Worth $233.37 Million

The world’s largest cryptocurrency exchange, Binance, has made a significant move on Bitcoin (BTC) despite the coin’s downward journey. As spotted by Lookonchain, an on-chain analytics platform, Binance purchased 3,600 BTC valued at approximately $233.37 million.

Binance SAFU expands Bitcoin holdings to $434.5 million

Notably, this purchase was initiated through the Binance Secure Asset Fund for Users (SAFU). This is Binance’s emergency insurance reserve meant to protect users during periods of challenge, like hacks or liquidity problems.

This new purchase by Binance SAFU takes the total volume of Bitcoin bought to 6,230 BTC, as it previously held 2,600 BTC. The total value of its Bitcoin holding now stands at about $434.5 million.

It represents a significant amount for Binance SAFU. The addition of more Bitcoin shows confidence from Binance that they are determined to strengthen their safety reserve. It could send a message of reassurance to users of the exchange that their assets are in safe hands.

The move also signals institutional accumulation at a time when the Bitcoin price outlook is bearish. Binance is betting hugely on the leading crypto asset to rebound regardless of its current market performance. Market watchers are likely to interpret the development as mildly bullish and could have some impact in slowing down the downward plunge of Bitcoin.

As of this writing, Bitcoin is changing hands at $64,598.81, which represents a 9.3% decrease in the last 24 hours. Earlier, Bitcoin lost over $10,000 as it crashed from a peak of $71,802.46 to a low of $60,074.20 before climbing to its current price.

Trading volume has surged by 78.12% to $144.55 billion as it appears many other investors are also engaged in accumulation. They could be taking advantage of the massive dip to increase their portfolio while anticipating a recovery.

Mixed price outlook as analysts clash on Bitcoin’s next move

Amid the bearish outlook of the leading crypto asset, global wealth management company Stifel has sounded a warning to investors. Stifel predicted that Bitcoin could risk another 47% decline, dragging prices to $38,000.

The wealth management company cited tightening liquidity and unrelenting exchange-traded funds outflows as triggers.

However, renowned investor Bill Miller believes Bitcoin could find rock bottom at $60,000. He identified this level as the cash production cost of creating every new coin that still allows Bitcoin miners to stay in business.

On the extreme of the spectrum, eternal Bitcoin critic Peter Schiff has urged holders of the coin to dump it. Schiff noted that Bitcoin has dropped by 60% against gold and could decline further.