A recent report from blockchain analytics company Chainalysis reveals that cryptocurrency investors experienced a profitable year in 2023, bouncing back from a prolonged period of losses. The report estimates that investors made a total of $37.6 billion in realized gains, which refers to the profits obtained from selling assets at a higher price than their initial purchase. This recovery is a significant improvement compared to the $127.1 billion in losses recorded in 2022, although it falls short of the gains seen during the peak of the bull market in 2021, which amounted to $159.7 billion.
Throughout the year, crypto investors consistently saw gains, with only two consecutive months of losses in August and September, coinciding with increased regulatory scrutiny in the United States. However, gains quickly rebounded in November and December as investors anticipated the approval of Bitcoin exchange-traded funds (ETFs).
The United States led the pack by a considerable margin, with an estimated $9.36 billion in realized gains. The United Kingdom followed closely in second place, with approximately $1.39 billion in profits. Other countries such as Vietnam, China, Indonesia, India, Russia, and South Korea also recorded realized gains exceeding $1 billion.
Chainalysis determines investors’ crypto gains by analyzing the movement of assets into and out of services that can be converted into fiat currency. This methodology provides insights into the financial success of cryptocurrency investments.
Overall, the crypto market experienced a resurgence in 2023, allowing investors to reap substantial profits.