Crypto investors returned to gains in 2023, pocketing billions in profits during the year after a prolonged downturn, according to a new report from blockchain analytics firm Chainalysis.
The new estimates indicate realized gains — profits from selling assets for more than their purchase price — reached $37.6 billion in 2023, representing a significant recovery from realized losses of $127.1 billion in 2022. Relative to the latest bull market, however, the recovery is modest. In 2021, crypto investors realized gains of $159.7 billion, Chainalysis estimates.
“Interestingly, our total gains estimate for 2023 is lower than 2021, despite crypto asset prices growing at similar rates in each of those two years. One possible explanation for this could be that investors in 2023 were less likely to convert crypto assets into cash, under the expectation that prices would rise even higher.” lockquote>
Throughout 2023, crypto gains were consistent, with only two consecutive months of losses in August and September — when the United States cracked down on crypto companies. Gains soared again in November and December in anticipation of the approval of Bitcoin exchange-traded funds (ETF).
The United States ranked first in the list by a “wide margin” with $9.36 billion in estimated realized gains over the year. The United Kingdom stands second with an estimated $1.39 billion in earned profits. Vietnam, China, Indonesia, India, Russia, and South Korea are also among the countries with realized gains of over $1 billion.
lockquote data-ct-non-breakable=”true”>“We also see several upper and lower middle income countries whose residents appear to have achieved outsized gains, especially in Asia — Vietnam, China, Indonesia, and India, for example […]. We previously noted […] that countries in these income categories, and lower middle income countries in particular, showed strong cryptocurrency adoption that remained notably resilient even through the recent bear market.” lockquote>
According to Chainalysis, its methodology measures investors’ crypto gains based on the movements of assets into and out of services that can be converted to fiat currency.
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Crypto investors returned to gains in 2023, pocketing billions in profits during the year after a prolonged downturn, according to a new report from blockchain analytics firm Chainalysis.
The new estimates indicate realized gains — profits from selling assets for more than their purchase price — reached $37.6 billion in 2023, representing a significant recovery from realized losses of $127.1 billion in 2022. Relative to the latest bull market, however, the recovery is modest. In 2021, crypto investors realized gains of $159.7 billion, Chainalysis estimates.
“Interestingly, our total gains estimate for 2023 is lower than 2021, despite crypto asset prices growing at similar rates in each of those two years. One possible explanation for this could be that investors in 2023 were less likely to convert crypto assets into cash, under the expectation that prices would rise even higher.” lockquote>
Throughout 2023, crypto gains were consistent, with only two consecutive months of losses in August and September — when the United States cracked down on crypto companies. Gains soared again in November and December in anticipation of the approval of Bitcoin exchange-traded funds (ETF).
The United States ranked first in the list by a “wide margin” with $9.36 billion in estimated realized gains over the year. The United Kingdom stands second with an estimated $1.39 billion in earned profits. Vietnam, China, Indonesia, India, Russia, and South Korea are also among the countries with realized gains of over $1 billion.
lockquote data-ct-non-breakable=”true”>“We also see several upper and lower middle income countries whose residents appear to have achieved outsized gains, especially in Asia — Vietnam, China, Indonesia, and India, for example […]. We previously noted […] that countries in these income categories, and lower middle income countries in particular, showed strong cryptocurrency adoption that remained notably resilient even through the recent bear market.” lockquote>
According to Chainalysis, its methodology measures investors’ crypto gains based on the movements of assets into and out of services that can be converted to fiat currency.
We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
StartupNews.fyi is a leading global startup and technology media platform known for its end-to-end coverage of the startup ecosystem across India and key international markets. Launched with the vision of becoming a single gateway for founders, investors, and ecosystem enablers, StartupNews.fyi has grown steadily over the years by publishing tens of thousands of verified news stories, insights, and ecosystem updates, reaching millions of startup enthusiasts every month through its digital platforms and communities.
