1inch fund sells Ethereum and Wrapped Bitcoin holdings amid market rebound

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 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 uderwater,” wrote EmberCN.

Moreover, EmberCN noted that 1inch has previously been trading the three assets with a winning rate, especially Ethereum.

You might also like: Kaiko: February liquidations set stage for more sustained alt rally, ADA set for biggest pump

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.

Source: crypto.news

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.

Source: crypto.news

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.

You might also like: Crypto liquidations tally over $1b, why is crypto crashing?

Source