Cryptocurrency
Bear Market Ethereum (ETH) Trade Leads to $132 Million Profit for Savvy Trader: Details
A cryptocurrency trader has made headlines by securing a profit of $131.72 million through a strategic investment in Ether (ETH).
This notable trade was made during the 2022 bear market, after which the individual held onto the assets through volatile market conditions.
The 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 declines in 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 shows 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 very profitable, as the asset’s value recovered in the 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 surged to $3,062, resulting in transfers worth $214.34 million. Despite these movements, the address still holds 26,639 ETH from the original purchase, currently valued at $68.81 million.
This incident shows the concept of “diamond hands,” a term used to describe individuals who hold onto their investments amid market volatility and price fluctuations. Such investors resist the urge to sell their assets during market dips, believing in the long-term potential of their trade.
Other Similar Events
The cryptocurrency market has seen other notable success stories recently. For instance, a Shiba Inu (SHIB) investor with diamond hands made a $1.1 million profit on a $2,625 investment after holding for three years.
Reports show that after being dormant 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), achieving a gain of 419 times their initial investment.
Similarly, just two weeks before, another trader turned $3,000 worth of Pepe (PEPE) meme coin into $46 million within one year, equivalent to a 15,718x gain.
This was possible due to the reemergence of the GameStop saga, which caused a rally in the price of certain meme coins at the time.
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XRP seems to have found support around 50 cents. Can buyers push the price higher this week?
Key Support levels: $0.50
Key Resistance levels: $0.54, $0.68
1. Price Finds Support
After a sharp fall last week, bulls appear to be back. XRP opened this Monday in green and is keen to return on an uptrend. As long as the key support at 50 cents holds, buyers have a good chance to return on the offensive.
2. Sellers are Retreating
Early October saw a spike in sell volume, but now sentiment across the market is improving, which could see the momentum shift back into the bulls’ favor. If so, buyers can aim to take XRP back above 60 cents. However, once there, sellers could return, as in late September.
3. MACD Momentum Shifting
After a difficult start this month, the momentum on the daily MACD is showing the first signs of a reversal, with a histogram making higher lows. If this trend continues, buyers could soon take over the price action and push XRP to break higher again.
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The price of Bitget’s BGB token unexpectedly dropped by 50% on the morning of October 7 before beginning to recover.
The platform has announced that it will compensate users for any losses resulting from the sudden volatility, which is still under investigation.
Exchange Promises Full Compensation
According to CoinGecko data, the incident saw the token’s value fall from $1.14 to $0.64 before staging a quick recovery. In a post on X, Bitget addressed the situation, saying, “BGB experienced unexpected volatility today due to market conditions, but the price has quickly stabilized.”
The platform reassured its users, promising to fully compensate for any asset losses. It also announced that a detailed compensation plan would be released within 24 hours, with the entire process set to be completed within 72 hours.
Bitget CEO Gracy Chen reiterated this message in a separate X post:
“The incident is still under investigation, but I want to assure everyone affected that we will not let any Bitget users suffer losses.”
Chen emphasized that Bitget’s overall standing remains strong, noting that the platform achieved a global market share of 11% in the third quarter of 2024, making it the fourth-largest exchange globally. Additionally, it boasts an asset reserve exceeding 176% and holds the second-largest protection fund globally, which is designed to compensate users quickly in the event of such incidents.
The Nature of Flash Crashes
Meanwhile, this incident mirrors a past development that occurred earlier this year with OKB, the native cryptocurrency of the OKX exchange. The token faced sudden price collapses, falling from a high of $48 to $25 within hours. The event was reportedly triggered by several large leveraged position liquidations, leading to further sell-offs and price declines.
At the time, OKX responded by reassuring its users that it would compensate them for the losses incurred from the unusual liquidation. While OKB’s crashes were linked to market-wide volatility, Bitget has yet to pinpoint the exact cause behind today’s event.
A cryptocurrency “flash crash” occurs when several holders rapidly sell a specific crypto asset, surpassing buyer demand and causing the price to drop sharply in a short amount of time. Unlike a typical collapse, the price usually recovers quickly, often returning to a level close to where it started.
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[PRESS RELEASE – Dubai, UAE, October 7th, 2024]
On October 22-23, the Blockchain Life 2024 forum will take place in Dubai. Over 10,000 participants from 120 countries will come together for the crypto event to share industry insights on the eve of Bull Run 2025.
Participants will hear from leading voices in the blockchain space, who will share market analysis on market trends and potential future developments.
Confirmed figures include:
- CEO Tether – Paolo Ardoino
- Co-Founder Animoca Brands – Yat Siu
- CEO Ledger – Pascal Gauthier
- CEO Cardano Foundation – Frederik Gregaard
- CEO Dubai Blockchain Center – Dr. Marwan Alzarouni
- Co-Founder Litecoin Foundation – Xinxi Wang
- CEO Vechain – Sunny Lu
- CEO of dYdX Foundation – Charles d’Haussy
- Founder Listing.Help, Jets Capital – Sergei Khitrov
- Founder DWF Labs – Andrei Grachev
- Co-Founder Tezos – Arthur Breitman
- CEO Trust Wallet – Eowyn Chen
- Co-Founder Osmosis Labs – Sunny Aggarwal
- Co-Founder of Sui (Mysten Labs) – Kostas Chalkias
- Head of Investments at Maelstrom Fund – Akshat Vaidya
- Founder Notcoin – Sasha Plotvinov
- Co-Founder, CEO Celestia Labs – Mustafa Al-Bassam
- Google Cloud – Tiago Henriques
- Program Lead MetaMask – Zied Brini
In addition to the lineup of speakers, Blockchain Life 2024 is also set to include behind-the-scenes discussions that will provide an opportunity for networking and exchanging information on the latest advancements in the sector.
The forum is coming soon. Readers can purchase tickets with a 10% discount using promo code chainwire.
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