BFUSD -1.99% Remains Steady in Its Long-Term Pattern Despite Market Pullback

On September 12, 2025, BFUSD experienced a 5.99% decline within a 24-hour span, settling at $1.0003. Over the past week, month, and year, however, BFUSD has each seen a 7% increase.

BFUSD, BlockFi’s algorithmic stablecoin, underwent a brief drop of nearly 6% in just one day, finishing at $1.0003. Despite this short-term volatility, its long-term track record remains strong with 7% gains across the last seven days, month, and year. This trend signals a momentary correction within an otherwise steady upward movement.

This recent downturn seems to be largely driven by broader market fluctuations rather than any underlying weakness in the token. BFUSD has reliably held its dollar peg, and its collateralization framework remains unaffected. Additionally, there have been no new governance or protocol changes reported in the past 72 hours, eliminating internal policy adjustments as a possible reason for the drop.

Technical analysis indicates that a recovery could be on the horizon, as the short-term dip has not breached significant support points. The RSI is nearing an oversold condition, and the 50-day and 200-day moving averages are still closely tracking each other, suggesting the broader trend remains upward. These factors may lead market participants—especially those using algorithmic or index strategies—to view the recent pullback as a chance to buy.

Backtest Hypothesis

The suggested backtesting approach aims to assess the performance of a time-based rebalancing strategy using historical BFUSD prices. This method assumes the coin will continue to keep its peg and that short-term price swings are temporary. Trades are initiated when the price deviates more than 2% from the peg in a day, and positions are closed once the price returns to within 1% of the peg. This strategy utilizes BFUSD’s inherent price stability while accommodating brief market shifts.

The approach also features a trailing stop to secure profits during upward corrections. It is intentionally not speculative, relying instead on BFUSD’s algorithmic stability for price support. Based on the token’s historical data, the backtest anticipates a favorable risk-adjusted return over a 60-day period, especially under stable peg conditions.