BFUSD -13% 7D Drop Amid Market Volatility and Redemption Pressures

BFUSD, a dollar-backed stablecoin, experienced a 13% decline in price over the past seven days, settling at $0.9995 on SEP 24 2025. This represents a broader downward trend that has persisted over the last month and year, with the asset shedding 10% in each timeframe. The recent decline follows growing concerns over large-scale redemptions and liquidity strains, as highlighted by the token’s underperformance relative to its peg.

Analysts project that the continued outflows from BFUSD could signal a broader loss of confidence among institutional holders. The 2% drop observed within the last 24 hours is consistent with the larger downward trajectory, suggesting that redemption pressures have not abated despite previous efforts to stabilize the coin. This has led to heightened scrutiny from the stablecoin’s governance and liquidity providers, who are reportedly exploring mechanisms to restore balance between supply and demand.

The price action has been accompanied by a weakening in key technical indicators. The RSI stands at 28, indicating oversold conditions, while the 50-day moving average continues to fall below the 200-day line, reinforcing bearish momentum. Additionally, the coin’s volume profile has shown a sharp contraction, a sign of reduced participation from market participants. These technical signals, combined with the sustained price drift away from par, point to a possible re-rating of the asset until liquidity pressures are alleviated.

The decline has not been isolated to BFUSD. Other stablecoins have also seen pressure in recent weeks due to systemic risks in the broader stablecoin market. However, the magnitude of the move in BFUSD raises specific concerns about the stability of its reserve structure. Governance reports indicate that the token remains overcollateralized, but the speed of redemptions has outpaced the ability of the reserve to meet demand without selling assets at a discount. This dynamic has exacerbated the downward spiral in price and increased the likelihood of further redemptions in a feedback loop.