Ethereum Trader Nets $132 Million in Bear Market Investment

A cryptocurrency trader has gained significant attention by realizing a profit of $131.72 million through a well-timed investment in Ether (ETH).

This remarkable transaction took place during the 2022 bear market, after which the trader retained their assets through challenging market conditions.

The Investor’s Strategy

Blockchain analytics company Lookonchain has identified an Ether address that profited $131.72 million after investing during the 2022 bear market when many were losing hope amid declining asset prices.

“This is a smart diamond hand, buying $ETH in the bear market and selling $ETH in the bull market, making $131.72M!”

The wallet displays a purchase of 96,639 ETH from Coinbase on September 3 and 4, 2022, when the asset was valued at roughly $1,567. For two years, they held onto their holdings despite significant market volatility. This strategy proved fruitful, with the asset’s value rebounding in the years that followed.

In March 2024, they transferred over 72% of their initial investment, amounting to 70,000 ETH, through various transactions to the crypto exchange Kraken.

At the time of these transactions, the market price of Ether had risen to $3,062, resulting in transfers amounting to $214.34 million. Despite these transfers, the address still retains 26,639 ETH from the initial purchase, currently valued at $68.81 million.

This event illustrates the concept of “diamond hands,” describing investors who maintain their positions despite market fluctuations and price volatility. Such individuals resist the temptation to sell during downturns, trusting in the long-term potential of their investments.

Other Similar Successes

The cryptocurrency landscape has witnessed other impressive success stories in recent times. For example, a Shiba Inu (SHIB) investor with diamond hands recorded a $1.1 million profit on a $2,625 investment after three years.

Reports indicate that following a 3.5-year period of inactivity, this investor eventually sold SHIB for a profit. They had invested 2 ETH ($2,625) to acquire 48.09 billion SHIB on February 1, 2021, selling it later for 278.7 ETH ($1.1 million), achieving a return of 419 times their original investment.

In a similar vein, just two weeks prior, another trader transformed $3,000 worth of Pepe (PEPE) meme coin into $46 million within a year, marking a staggering 15,718x return.

This remarkable gain was attributed to the resurgence of the GameStop phenomenon, which fueled a surge in certain meme coin prices during that period.