Crypto Investors Bounce Back in 2023, US and Asian Markets Lead in Gains: Chainalysis Report
Summary:
Blockchain analytics firm Chainalysis reported a significant financial recovery for cryptocurrency investors in 2023, following a previous downturn. Despite two consecutive months of losses in August and September due to US regulations, steady gains were observed throughout the year. The US led in estimated realized gains totaling $9.36 billion. Asian middle-income countries like Vietnam, China, Indonesia, and India saw unexpectedly high gains owing to strong cryptocurrency adoption.
Blockchain analytics firm Chainalysis reports that cryptocurrency investors saw a substantial financial rebound in 2023 after a challenging period, pulling in billions through the course of the year. Data suggests that investors managed to accrue $37.6 billion in realized profits in 2023, a dramatic improvement from substantial losses experienced in 2022, where realized losses amounted to $127.1 billion. Compared to a thriving year in 2021, where the sector saw realized gains of $159.7 billion, 2023 gains seem modest despite crypto prices mirroring the same growth trajectory. Possible reasoning could be what seems like a propensity among investors in 2023 to hold on to their crypto assets in the expectation of further price increase, rather than opting for liquidation.
Throughout the year, crypto market earnings have been steady, despite experiencing a slight dip in August and September, when US regulatory bodies began cracking down on crypto firms. Profits received a boost in November and December, stimulated by speculation of Bitcoin ETFs securing approval. Data provided by Chainalysis show that the US led the way by quite some distance in realized gains for 2023, raking in an estimated $9.36 billion. The UK followed, making an estimated $1.39 billion. Vietnam, China, Indonesia, India, Russia, and South Korea were other notable nations to tally over $1 billion in realized gains.
Interestingly, several middle income nations, particularly in Asia, witnessed unexpectedly high gains. Countries including Vietnam, China, Indonesia, and India arguably benefited from the robust adoption of cryptocurrency that showed resilience even in the face of a bear market. Chainalysis gauges investor profits in the cryptocurrency domain evaluating the shifting of assets to and from services that are capable of conversion to standard fiat currencies.
Related: A crypto scam franchise, dubbed Inside Pink Drainer, attracts investigation and analysis by a security analyst.
Published At
3/14/2024 7:28:46 PM
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