Friend with benefits gone wrong!

My best friend said he doesn't want to date me because he thinks it'll ruin our friendship (10+ years). Ok, fine. But his actions say otherwise. We talk for hours every single day, he tells me he's attracted to me, and he even said he can see us living together. I'm confusing and frustrated, so I'm trying to take a step back. Problem is I don't know how.

Any idea on how to fix this?

(We've never hooked up, or sent nudes. And yes, we're both 100 percent single).