Crypto Investors Bounce Back in 2023: Earn Average Gains of $900, CoinLedger Report Shows
Summary:
A report from crypto tax software provider CoinLedger indicates that in contrast to 2022's heavy losses, crypto investors averaged a net gain of nearly $900 from their cryptocurrency sales in 2023. According to the report, the rebound demonstrates the resilience of the crypto industry, which lost over $1.5 billion in 2022 due to the collapse of several major firms. The rise in crypto market capitalization in 2023 was primarily fuelled by the launch of Bitcoin exchange-traded spot funds and several U.S. bank failures. CoinLedger's analysis is based on data from 500,000 users, the majority of whom are based in the U.S.
In a significant shift from 2022, cryptocurrency investors averaged a profit of about $900 from their sales in 2023, data from CoinLedger, a company offering crypto tax software, reveals. A detailed analysis of 500,000 user reports showed that the average investor earned a net profit of $887.60 during the year under review, marking a stark recovery from 2022's average loss of $7,102. Realized gains or losses are based on the difference between the cost of acquiring cryptocurrency and the price at which it's sold or otherwise disposed of. In the US, a taxable event is usually triggered when cryptocurrency is transferred to a wallet not owned by the investor, such as in a sale on an exchange. According to CoinLedger's CEO, David Kemmerer, these favorable results offer a glimmer of hope for a rejuvenated crypto market. He pointed out that even after assets plummeted when FTX crashed, the industry's robustness was proven by a rapid rebound. Over the course of 2022, the crypto market lost more than $1.5 billion in total value, largely due to the collapse of several key industry players, including FTX trading platform, Crypto lenders Celsius and Voyager, and the Terra ecosystem. In 2022, most realized losses were from Ether(ETH) sales. However, 2023 saw a shift in fortunes, largely influenced by several U.S. bank failures and positive sentiment surrounding the launch of Bitcoin exchange-traded spot funds, which eventually materialized in January 2024. Cryptocurrency market cap witnessed significant growth in the last quarter of 2023. CoinLedger's data reveals that compared to other cryptocurrencies, Bitcoin holders are less likely to sell. Kemmerer revealed that the majority (80%) of CoinLedger's user base is located in the U.S., but the data also factored in users from Australia, Canada, and other countries.
Published At
2/7/2024 6:20:31 AM
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