BFUSD Drops 3.0% Over 24 Hours as Depegging Concerns Continue

On September 7, 2025, Blockchain.com's algorithmic stablecoin BFUSD dropped to $0.9988, showing a 3% fall in the past 24 hours. This decline is part of an ongoing trend, as the token has seen its value decrease by 3% over the last week, month, and year. Its continued deviation from the intended $1.00 peg has sparked investor and user concerns regarding the protocol's effectiveness at maintaining price stability. This recent move comes as algorithmic stablecoins face growing examination in the wake of broader volatility across the market.

BFUSD’s loss of its peg highlights persistent issues in sustaining its dollar value without adequate collateral or widespread market trust. Unlike stablecoins that are entirely backed by reserves, BFUSD uses a collection of crypto assets and algorithm-driven adjustments to balance supply and demand. However, these tools have struggled to function effectively amid recent market challenges, resulting in a gradual decrease in value. The absence of a set reserve ratio or clear rebalancing guidelines has added further doubt.

From a technical perspective, BFUSD is now trading below major psychological support points. Both the 50-day and 200-day moving averages remain at or above $1.00, indicating a continued bearish outlook. The Relative Strength Index (RSI) is at 28, signaling oversold conditions. Still, in the past, such a low RSI has not always brought about a rebound if core issues are not addressed. The Moving Average Convergence Divergence (MACD) is also negative, underscoring the downward trend.

Backtest Hypothesis

With the current technical landscape and the operational nature of algorithmic stablecoins in mind, a sample backtesting strategy was created to identify possible entry and exit points for BFUSD. The approach combines signals from moving averages and RSI divergence. In particular, it prompts a sell when the price closes below the 50-day moving average and RSI dips under 30, while a buy is triggered when the price rises above the 50-day average and RSI exceeds 70.

This strategy is intended to target brief mean-reversion moves within an asset that structurally underperforms. Although it does not ensure profitable outcomes, the backtest seeks to pinpoint possible turning points that could signal short-lived reversals in the ongoing downward trend. The results would be most meaningful if algorithmic controls are likely to restore balance between supply and demand in the market.