Key Points
- The crypto market crash has seen major liquidations, but some investors remain optimistic.
- 1inch’s investment fund has purchased discounted Ethereum and Wrapped Bitcoin amid the market crash.
The recent market crash in the cryptocurrency sector has resulted in some of the largest liquidations ever witnessed in the industry.
Despite this, many influential participants continue to express optimism.
Opportunity Amidst the Crash
These players are ready to buy blue-chip tokens like Bitcoin and Ethereum at reduced prices, viewing the crash as an ideal opportunity to buy the dip. This raises the question of whether it’s wise to consider buying Bitcoin and Ethereum at these discounted prices, given the high volatility.
During the wide market crash, 1inch’s investment fund has purchased Ethereum and Wrapped Bitcoin at discounted prices. 1inch is a decentralized network compatible with top blockchains like Ethereum, BNB Smart Chain, Avalanche, Phantom, Klaytn, and more.
The fund primarily invests in NFTs, automated market makers, cross-chain tokens, decentralized autonomous organizations, and governance tokens. The last funding by 1inch’s investment fund was allocated to EYWA in May 2024.
Investments in Ethereum and Wrapped Bitcoin
At present, the fund has bought 7,289 Ethereum tokens, valued at $10.44 million. Alongside the largest altcoin, the fund also purchased Wrapped Bitcoin worth $5 million.
With 52.07 Wrapped Bitcoin in their holdings, the fund has spent a total of $25.44 million in the past 24 hours. The average purchase price for Ethereum was significantly higher at $2,804, while Wrapped Bitcoin was bought at an average price of $96,021.
Historically, the 1inch team has proven to be savvy traders in the industry, making millions by trading Ethereum, Uniswap, and their own token, 1inch, on the market.
With 1inch buying key tokens like Bitcoin and Ethereum, analysts are highlighting the struggles of these two major cryptocurrencies at key price levels. According to a recent tweet from Martinez Ali, a crypto analyst, Bitcoin is on the verge of a potential downfall.
Based on the Bitcoin trader’s profit margin remaining at 3.36%, the analyst predicts a potential fall in Bitcoin. This is based on the historical price movement where Bitcoin has formed local bottoms when the profit margin drops below negative 12%.
This pattern has been consistent since 2022 and suggests a potential room for downside in Bitcoin before a true bottom is formed. However, for Ethereum, the analyst maintains significant bullish optimism.
With an inverted head and shoulder pattern, with a neckline at the $4,000 psychological mark, Ethereum is in the process of forming its right shoulder part. With a local resistance trendline influencing the Ethereum price, Ethereum is currently testing its crucial support level at $2,700.
To complete this pattern, Ethereum must maintain above the $2,700 mark and break above the local resistance trendline to challenge the neckline. Based on the Fibonacci levels and the price trend analysis, the Fibonacci levels suggest a potential target near the $7,000 mark.
While the crypto market is experiencing extreme volatility, smart money like 1inch’s investment fund is capitalizing on discounted prices. Bitcoin may still have room for a downside before reaching its true bottom, but Ethereum shows bullish potential with its technical patterns hinting at a possible surge.
