Ethereum (ETH) Trading in Bear Market Yields $132 Million for One Savvy Trader: Details

A cryptocurrency trader has made headlines by making a profit of $131.72 million through a strategic investment in Ether (eth).

This notable trade took place during the 2022 bear market, after which the individual held onto the assets during volatile market conditions.

The strategy of investors

Blockchain analytics firm Lookonchain has x.com/lookonchain/status/1837760199974858818?t=jXmPUECXbzj2pxtWoKdG7A&s=19″ target=”_blank” rel=”noopener” data-wpel-link=”external”>identified an Ether address that made a profit of $131.72 million after investing during the 2022 bear market, when others were losing confidence due to falling asset prices.

“This is a smart diamond hand, buying $eth in the bear market and selling $eth in the bull market, earning $131.72 million!”

The wallet sample a purchase of 96,639 eth from Coinbase between September 3 and 4, 2022, when the asset was trading at approximately $1,567. For two years, they held onto their holdings despite major market fluctuations. This approach proved highly profitable, as the asset’s value recovered in the following years.

In March 2024, they moved over 72% of their initial investment, equivalent to 70,000 eth, through multiple transactions to the Kraken cryptocurrency exchange.

At the time of these transfers, the market price of Ether had increased to $3,062, resulting in transfers worth $214.34 million. Despite these movements, the ADDRESS still has 26,639 eth from the original purchase, currently valued at $68.81 million.

This incident illustrates the concept of “diamond hands,” a term used to describe people who hold on to their investments amid market volatility and price fluctuations. These investors resist the temptation to sell their assets during market downturns, believing in the long-term potential of their trade.

Other similar events

Recently, the cryptocurrency market has witnessed other notable success stories. For example, a diamond-handed Shiba Inu (SHIB) investor made a profit of $1.1 million on a $2,625 investment after holding it for three years.

Information x.com/ShibalnuNews/status/1795233601778307232?t=MuiXG31bLxPek_NViQz0fw&s=19″ data-wpel-link=”external” target=”_blank”>show After being inactive for 3.5 years, this investor finally sold SHIB at a profit. He spent 2 eth ($2,625) to buy 48.09 billion SHIB on February 1, 2021, and sold it for 278.7 eth ($1.1 million), making a profit of 419 times his initial investment.

Similarly, just two weeks earlier, another trader turned $3,000 worth of Pepe meme coins (PEPE) into $46 million in one year, equivalent to a 15,718x profit.

This was made possible by the revival of the GameStop saga, which caused a surge in the price of certain meme coins at the time.

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