1inch Investment Fund Offloads Crypto Holdings

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 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. EmberCN noted, “Currently, everything is underwater.”

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 March 11. The price consistently moved below the 21-day Exponential Moving Average (EMA), with major price drops accompanied by spikes in volume, indicating aggressive liquidation. However, the price has recently 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 occasional 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 on March 11. By mid-March, WBTC formed support at the $80,000 level. Currently, WBTC has climbed back to $87,544, crossing above the EMA at $85,515.82, suggesting potential bullish momentum.

While the assets have moved back toward key resistance levels, their prolonged time below the 21-day EMA and previous sharp sell-offs indicate that the 1inch fund may be taking advantage of the bounce to reduce exposure and minimize potential downside risks.