The investment arm of decentralized exchange aggregator 1inch has begun offloading significant portions of its crypto portfolio, despite a recent rebound in prices. According to on-chain data shared by monitoring platform EmberCN, the move appears to be a calculated effort to cut losses and hedge against further volatility in the market.
Strategic Selling Amid Recovery
The 1inch fund recently sold 37.9 Wrapped Bitcoin (WBTC) at an average price of $86,578, totaling approximately $3.28 million. Alongside that, it also unloaded 511 Ethereum (ETH) at $2,072 each, generating around $1.05 million.
These sales come as both assets attempt to recover from sharp downturns earlier in the year. While Ethereum and WBTC have bounced back above key technical indicators like the 21-day Exponential Moving Average (EMA), their earlier performance left the fund’s positions deeply underwater.
Between February 2 and March 10, 1inch invested approximately $44.22 million into WBTC, ETH, and its native token 1INCH. That included the purchase of 11,198 ETH at an average of $2,577 (totaling $28.85 million), 160.8 WBTC at an average of $88,395 ($14.21 million), and 4.7 million 1INCH tokens for about $1.15 million.
“Currently, everything is underwater,” noted EmberCN, indicating that the recent sales may be aimed at damage control as the market remains uncertain.
Market Pressures and Technical Outlook
Since early February, Ethereum has seen a steep decline from over $3,300 to a low below $1,800 by March 11. The drop was marked by increased trading volume, especially during large liquidation periods. However, ETH has recently regained some ground, climbing back above $2,090 and testing the 21-day EMA at $2,067 for the first time in weeks.
Similarly, WBTC dropped from highs above $105,000 to around $76,000, with price action staying mostly below its 21-day EMA until mid-March. It has since recovered to $87,544, now trading above its EMA at $85,515, signaling a potential shift in momentum.
Despite these rebounds, the prior extended weakness below key moving averages may have prompted 1inch to take a more cautious stance.
Taking Profits or Cutting Losses?
While the 1inch fund has previously shown a strong track record in trading ETH profitably, its current positions are reportedly in the red. The decision to sell during a market recovery may reflect a desire to de-risk in the face of lingering macro and market uncertainties.
By reducing exposure during a temporary bounce, 1inch may be positioning itself for greater flexibility moving forward, whether for reinvestment at lower levels or to await clearer market signals.
As crypto markets continue to oscillate between fear and recovery, the fund’s moves underscore the cautious approach even seasoned players are taking amid ongoing volatility.
