A trader or investor who continues to hold a position in a cryptocurrency or asset that has lost significant value, often because they missed the opportunity to sell or are hoping for a recovery. Bag holders may hold out of emotional attachment, denial, or a belief that the asset will eventually return to its purchase price. The term is common in cryptocurrency communities and serves as a cautionary label for the risk of holding declining assets without a defined exit strategy.
Example
“When the meme coin dropped 95% from its all-time high, many early buyers became bag holders still waiting for a rebound that might never come.”