BTC Exits Top 10; Binance Moves SAFU to BTC; Warsh Picked for Fed
Key developments in digital assets today include Bitcoin falling out of the world’s top 10 assets by market capitalization, Binance moving its $1 billion user protection fund into Bitcoin, and U.S. President Donald Trump nominating Kevin Warsh for Federal Reserve chair.
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Liquidations push Bitcoin out of the world’s top 10 assets
Bitcoin’s pullback this week has moved it outside the 10 largest assets globally by market capitalization, as markets continue to absorb what has been described as the cryptocurrency industry’s largest forced liquidation on record. Trading near $83,000 per coin, Bitcoin’s market value is about $1.65 trillion, placing it 11th worldwide and below major companies such as Saudi Aramco and Taiwan Semiconductor Manufacturing Co. (TSMC), according to market data trackers.
Gold has extended its lead as the world’s largest asset after a record-setting rally, accompanied by strong growth in gold futures activity, based on recent data highlighted by cryptocurrency exchange MEXC.
Bitcoin’s market capitalization reached nearly $2.5 trillion in October when prices briefly surpassed $126,000. The latest decline followed approximately $1.6 billion in long liquidations, as the price dropped quickly from near $90,000 to below $82,000, reviving concerns about a potential prolonged downturn for the largest cryptocurrency.
Binance to convert $1 billion SAFU reserves into Bitcoin
Binance will re-denominate its Secure Asset Fund for Users (SAFU) from stablecoins into Bitcoin over the next 30 days, shifting the reserve’s holdings to BTC.
In an open letter to the crypto community, the exchange said the move reflects its view of Bitcoin (BTC) as the core long-term asset of the crypto ecosystem rather than solely a trading instrument. Binance added it would rebalance the fund back up to $1 billion if market volatility reduces its value below $800 million.
The change increases the fund’s exposure to Bitcoin price movements. A spokesperson said the exchange will continue to support the industry through market cycles, invest in the broader ecosystem, and consider allocations of “core assets,” including BNB, during the next review. The spokesperson also stated Binance would use its treasury reserves to replenish SAFU if it falls below $800 million.
Launched in 2018 and funded by a portion of trading fees, SAFU is intended as an emergency reserve to compensate users in “extreme” situations such as hacks or critical platform incidents. The spokesperson noted the types of losses covered “may include losses sustained by users in the rare event of a platform security or other incident.”
Open letter to the crypto community. Source: Binance
Trump nominates Kevin Warsh for Federal Reserve chair
U.S. President Donald Trump nominated Bitcoin-friendly Kevin Warsh as the next chair of the Federal Reserve on Friday.
Reuters reported Thursday that Trump met with Warsh earlier in the day, with a person briefed on the meeting saying Warsh made a strong impression on the president.
On prediction platform Polymarket, Warsh’s odds of being nominated rose from 30% to 95%, while the odds for former frontrunner Rick Rieder of BlackRock fell to 3.4%.
Kevin Warsh emerged as the frontrunner for Trump’s Fed chair pick on Polymarket. Source: Polymarket
Warsh is widely viewed as favoring fiscal restraint, lower inflation, and an exit from quantitative easing. He has expressed a favorable view of Bitcoin (BTC), stating in July that it is “an important asset that can help inform policymakers when they’re doing things right and wrong.”
This article is for informational purposes only and does not constitute investment advice. Markets are volatile; readers should conduct their own research.
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