1inch’s investment fund is offloading portions of its crypto holdings despite a recent market rebound, signaling a strategic effort to cut losses and hedge against further potential downside.
According to on-chain monitoring X account EmberCN, the 1inch team’s investment fund recently sold 37.9 Wrapped Bitcoin (WBTC) at $86,578 each, totaling about $3.28 million, and 511 Ethereum (ETH) at $2,072 each, amounting to around $1.05 million.
EmberCN revealed that from Feb. 2 to March 10, the fund spent a total of $44.22 million on WBTC, ETH, and 1INCH. This included purchasing 11,198 ETH for a total of about $28.85 million at an average price of $2,577, 160.8 WBTC totaling around $14.21 million at an average price of $88,395, and 4.7 million 1INCH for roughly $1.15 million at an average price of $0.245. “Currently, everything is underwater,” wrote EmberCN.
Moreover, EmberCN noted that 1inch has previously been trading the three assets with a winning rate, especially Ethereum.
Since the beginning of February, when 1inch started to acquire the assets, ETH has dropped nearly 50% from levels above $3,300 to lower than $1,800 on 11 March. The price consistently moving below the 21-day Exponential Moving Average, with the major price drops accompanied by spikes in volume, particularly in early February, suggesting aggressive liquidation. However, the price has now climbed back above $2,090, testing the 21-day EMA at $2,067 for the first time in weeks.
Similarly, WBTC has suffered a significant decline since the beginning of February, when the price briefly peaked above $105,000. Like Ethereum, it traded below the 21-day EMA since then, with a few brief breakouts. The decline became more pronounced in late February and early March, with WBTC experiencing sharp sell-offs that brought the price down to around $76,000 at its lowest low on March 11. In mid-March, WBTC started to form support at the $80,000 level. As of now, WBTC has climbed back to $87,544, having crossed above the EMA at $85,515.82, suggesting that bullish momentum may be building.
While the assets have climbed back toward key resistance levels, their prolonged period below the 21-day EMA and previous sharp sell-offs suggest that the 1inch fund may be taking advantage of the bounce to reduce exposure and minimize potential downside risks.