1inch Investment Fund Sells Crypto Assets Despite Market Recovery

Despite a recent market rebound, 1inch's investment fund is selling parts of its cryptocurrency holdings, indicating a strategic move to cut losses and hedge against further potential declines.

Based on on-chain monitoring by EmberCN, the 1inch team's investment fund recently sold 37.9 Wrapped Bitcoin (WBTC) at $86,578 each, totaling approximately $3.28 million, and 511 Ethereum (ETH) at $2,072 each, amounting to around $1.05 million.

EmberCN reported that from February 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. EmberCN noted that "currently, everything is underwater."

Furthermore, EmberCN observed that 1inch had previously traded the three assets with a winning rate, particularly Ethereum.

Since 1inch began acquiring the assets at the beginning of February, ETH has decreased nearly 50% from levels above $3,300 to below $1,800 on March 11. The price consistently remained below the 21-day Exponential Moving Average (EMA), with major price drops accompanied by spikes in volume, particularly in early February. This suggests aggressive liquidation. However, the price has now risen above $2,090, testing the 21-day EMA at $2,067 for the first time in weeks.

Similarly, WBTC has experienced 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 risen to $87,544, having crossed above the EMA at $85,515.82, suggesting that bullish momentum may be building.

Although the assets have risen 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.