Crypto investors experienced a resurgence in profits in 2023, as they bounced back from a prolonged downturn and raked in billions, according to a report by blockchain analytics firm Chainalysis.
The report reveals that realized gains, which refer to profits made from selling assets at prices higher than their purchase price, reached a staggering $37.6 billion in 2023. This marks a significant recovery from the realized losses of $127.1 billion experienced in 2022. However, compared to the previous bull market, the recovery is relatively modest. In 2021, crypto investors amassed gains of $159.7 billion, as estimated by Chainalysis.
Throughout the year, crypto gains remained consistent, with only two consecutive months of losses in August and September. These losses coincided with the US government’s crackdown on crypto companies. However, gains skyrocketed once again in November and December, driven by the anticipation of Bitcoin exchange-traded funds (ETFs) receiving approval.
The United States emerged as the clear leader in terms of realized gains, with an estimated $9.36 billion earned over the year. The United Kingdom secured the second spot with an estimated $1.39 billion in profits. Other countries with realized gains surpassing $1 billion include Vietnam, China, Indonesia, India, Russia, and South Korea.
Chainalysis utilizes a methodology that assesses investors’ crypto gains by tracking the movement of assets into and out of services that allow conversion to fiat currency.
Magazine:
Inside Pink Drainer — Security analyst defends his crypto scam franchise