BFUSD rises 2% in 24 hours due to enhanced stability and improved liquidity measures

As of September 26, 2025,

experienced a 2% increase over the past 24 hours, reaching a value of $0.9999. Over the last week, BFUSD climbed 4%, saw a 3% rise in the past month, and also gained 3% over the previous year.

BFUSD, an algorithmic stablecoin linked to the U.S. dollar, has recently shown greater price stability after implementing significant upgrades to its reserve management and liquidity systems. Adjustments to its collateral structure and liquidity reserves have attracted interest from institutional investors and algorithmic traders, who see these changes as enhancing the coin’s ability to maintain its peg during turbulent market periods.

One notable update was the addition of a variety of yield-generating assets to its reserves, which lessens dependence on any single collateral type. This adjustment directly addresses previous episodes of volatility and is anticipated to strengthen the stablecoin’s resilience against sudden liquidity disruptions. These enhancements were supported by a technical audit of the new system, further increasing investor trust.

Technical analysis from the past week points to a robust upward movement. Both the 50-day and 200-day moving averages have been rising, with BFUSD staying above the 50-day average for four straight days. The Relative Strength Index (RSI) is holding steady in a neutral zone, suggesting balanced sentiment and no immediate risk of the asset being overbought. This has led traders and analysts to adopt a cautiously optimistic outlook.

Experts believe that these recent structural improvements, along with stable technical signals, could help reinforce the coin’s peg and potentially draw more arbitrage activity, especially as the broader stablecoin sector appears to be consolidating.

Backtesting Strategy Hypothesis

Considering BFUSD’s latest performance and technical setup, a backtesting approach has been suggested to test the effectiveness of a mean-reversion strategy, taking into account the coin’s improved volatility characteristics. The method involves opening long positions when BFUSD’s price falls below the 50-day moving average and closing them once it rises above, with stop-loss and take-profit points determined by historical volatility ranges.

This hypothesis is based on the idea that the enhanced reserve framework lowers the chances of significant price swings away from $1, thereby making moving average signals more dependable. By running this strategy over the past 90 days, the test seeks to evaluate how well systematic trading can perform in a stablecoin market that has benefited from structural improvements. The results are expected to provide insights into the potential for algorithmic stablecoins to support rule-based trading under optimized liquidity conditions.