Ethereum investor earns $131.7M by holding during bear market

A cryptocurrency investor earned $131.7 million by holding onto Ethereum (CRYPTO:ETH) during a two-year bear market, demonstrating the long-term gains possible through the "hodl" strategy.

Blockchain analytics firm Lookonchain identified the wallet of the investor, who made their initial purchase of 96,639 ETH from Coinbase in September 2022 when the price of Ether was around $1,567.

The investor spent $151.42 million on the Ethereum purchase and held onto the tokens through volatile market conditions.

In March 2024, they transferred 70,000 ETH, valued at $214.34 million, to the Kraken exchange, making a significant profit as Ethereum's price surged to $3,062 during that period.

Despite selling a large portion, the investor still holds 26,639 ETH in their wallet, currently valued at $68.81 million.

This case exemplifies the potential of the "diamond hands" strategy, where individuals resist panic selling and hold their assets through market volatility.

Lookonchain pointed out that diamond hands strategies are not limited to Ethereum.

A Shiba Inu (CRYPTO:SHIB) investor made $1.1 million from an initial $2,625 investment after waiting 3.5 years.

The investor bought 48.09 billion SHIB and sold it for 278.7 ETH, earning 419 times their initial investment.

These examples show that holding assets during periods of uncertainty can yield substantial profits.

Even in a bear market, the hodl strategy has allowed investors to capitalise on long-term gains, reinforcing the mindset of "buying the dip" and waiting for market recoveries.

At the time of writing, the Ethereum (ETH) price was $2,626.47.