1inch Investment Fund Sells Crypto Holdings Amid Market Recovery

The 1inch investment fund has recently offloaded portions of its cryptocurrency holdings, signaling a strategic move to mitigate losses and manage potential risks. Despite a rebound in the crypto market, the fund has opted to reduce exposure to key assets, including Wrapped Bitcoin (WBTC) and Ethereum (ETH).

Details of Recent Sales

On-chain monitoring reports indicate that the 1inch investment team sold 37.9 WBTC at $86,578 each, amounting to approximately $3.28 million. Additionally, they sold 511 ETH at $2,072 per token, totaling around $1.05 million.

Earlier data reveals that between February 2 and March 10, the fund invested a total of $44.22 million across WBTC, ETH, and 1INCH tokens. This included acquisitions of:

  • 11,198 ETH for about $28.85 million, averaging $2,577 per token.
  • 160.8 WBTC for roughly $14.21 million, averaging $88,395 per token.
  • 4.7 million 1INCH tokens for approximately $1.15 million, averaging $0.245 per token.

Despite these investments, on-chain data suggests that the current holdings are operating at a loss, with prices significantly below the fund’s average purchase levels.

Market Trends for Ethereum

Since early February, Ethereum experienced a steep decline, dropping nearly 50% from above $3,300 to below $1,800 by March 11. The asset consistently traded below the 21-day Exponential Moving Average (EMA), with significant price drops accompanied by spikes in trading volume. These trends suggest aggressive liquidation activity during this period.

However, Ethereum has shown signs of recovery. Its price climbed back above $2,090 and is currently testing the 21-day EMA at $2,067 for the first time in weeks. This recovery may indicate a potential shift in momentum, but the previous sharp declines remain a concern for cautious investors.

Performance of Wrapped Bitcoin

Similarly, Wrapped Bitcoin (WBTC) faced substantial declines. After briefly peaking above $105,000 in early February, its price fell sharply, trading below the 21-day EMA. The downtrend intensified in late February and early March, with WBTC hitting a low of around $76,000 on March 11.

In mid-March, WBTC began forming support at the $80,000 level and has since rebounded to $87,544. It recently crossed above the 21-day EMA at $85,515, hinting at the possibility of building bullish momentum. However, the prolonged bearish period continues to weigh on investor sentiment.

Strategic Implications

The recent sales by the 1inch fund suggest a calculated effort to reduce exposure to these volatile assets. By capitalizing on the current market recovery, the fund aims to minimize potential downside risks while managing its portfolio more conservatively. Although both Ethereum and WBTC have shown signs of recovery, their extended periods below key technical levels underscore the challenges faced in the current market environment.

For investors and crypto enthusiasts, these developments highlight the importance of monitoring market trends and employing risk management strategies to navigate the ever-changing cryptocurrency landscape.

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