Crypto investors enjoyed a profitable year in 2023, as they bounced back from a prolonged downturn and raked in billions in profits, according to a report by blockchain analytics firm Chainalysis.
The report reveals that realized gains, which are the profits acquired from selling assets at a higher price than their purchase price, reached a staggering $37.6 billion in 2023. This marks a significant recovery from the previous year’s realized losses of $127.1 billion. However, compared to the peak of the bull market in 2021, the recovery is relatively modest, as crypto investors garnered gains amounting to $159.7 billion.
Despite a couple of consecutive months of losses in August and September, triggered by the United States’ crackdown on crypto companies, the overall trend in 2023 was positive. The anticipation of Bitcoin exchange-traded funds (ETFs) being approved led to a surge in gains once again in November and December.
The United States emerged as the clear leader in terms of realized gains, with an estimated $9.36 billion. The United Kingdom secured the second spot with approximately $1.39 billion in profits. Other countries that achieved realized gains exceeding $1 billion include Vietnam, China, Indonesia, India, Russia, and South Korea.
Chainalysis measures investors’ crypto gains by analyzing the movement of assets into and out of services that can be converted into fiat currency. This methodology enables them to provide accurate estimates of realized gains.
Link to Image: [insert image of estimated realized crypto gains from Chainalysis report]
In another publication titled “Inside Pink Drainer,” a security analyst defends his crypto scam franchise.