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  3. /Bag Holder
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Bag Holder

Someone stuck holding a cryptocurrency that's dropped significantly in value.

Definition

Someone stuck holding a cryptocurrency that's dropped significantly in value. They either can't sell because liquidity dried up, or they're hoping it'll recover. Nobody wants to be the bag holder when a project fails.

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Related Terms

Bear Market

A prolonged period where prices fall 20% or more from recent highs.

Dump

A sudden, significant price drop usually caused by large sell-offs.

Exit Liquidity

The people who buy when insiders or early investors are selling.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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