A bag holder is an investor who holds onto a cryptocurrency despite its declining value. This often happens when they purchase the asset at a high price, hoping it will rise again. When the price drops significantly, they may feel stuck, reluctant to sell at a loss.

The term originates from the idea of someone holding a bag full of something worthless, representing their investment. Many bag holders are initially optimistic about the potential of the asset, but as the market changes, they may become disheartened. Bag holders can experience a range of emotions, including frustration, regret, and hope.

Sometimes, they wait for a market recovery, hoping to break even or even profit. However, prolonged holding can sometimes lead to larger losses if the asset continues to decline. In summary, being a bag holder illustrates the challenges of market volatility and the emotional hurdles investors face when their expectations don’t align with reality.