Bear Market Ethereum (ETH) Trading Leads to $132 Million Profit for Smart Trader – Details

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

This remarkable trade was made during the bear market of 2022, after which the individual remained in the assets through volatile market conditions.

Investors’ strategy

Blockchain analytics firm Lookonchain has identified an Ether address that made a $131.72 million profit after investing during the 2022 bear market, when others were losing confidence due to falling asset prices.

“This is a smart diamond hand, he buys $ETH in the bear market and sells $ETH in the bull market, making $131.72 million!”

The wallet shows a purchase of 96,639 ETH from Coinbase between September 3-4, 2022, when the asset was trading at around $1,567. For two years, they maintained their holdings despite significant market fluctuations. This approach proved very profitable as the value of the asset recovered in subsequent years.

In March 2024, they moved more than 72% of their initial investment, equivalent to 70,000 ETH, through multiple transactions to the crypto exchange Kraken.

At the time of these transfers, the market price of Ether had risen to $3,062, resulting in $214.34 million worth of transfers. Despite these moves, 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 urge to sell their assets during market downturns, believing in the long-term potential of their trade.

Other similar events

The cryptocurrency market has seen other notable success stories recently. For example, a Shiba Inu (SHIB) investor with diamond hands made a profit of $1.1 million on an investment of $2,625 after holding for three years.

Reports show that after being inactive for 3.5 years, this investor finally sold SHIB at a profit. They 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 their initial investment.

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

This was possible due to the resurgence of the GameStop saga, which led to an increase in the price of certain meme coins at the time.

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