Although the profits perceived by cryptocurrency investors in 2023 were much lower than in the 2021 bull cycle, Chainalysis highlighted the significant recovery that the market has had.
According to data collected by Chainalysis in its report “2023 Cryptocurrency Gains by Country”, cryptocurrencies gave their investors Total earnings of $37.600 billion in 2023. This represents only 23,5% of the income that this market generated for its investors in the previous bull cycle.
However, despite the fact that last year's total profits were much lower than those seen in 2021, these show the important recovery that cryptocurrencies have been experiencing in general, taking into account the bearish events that the crypto market faced in 2022.
According to Chainalysis, in 2022, losses totaled $127.100 billion.
Source: Chainalysis
Bitcoin and cryptocurrencies began to recover in the fourth quarter
According to report From Chainalysis, cryptocurrency investor profits began to rise in October, being November and December the months with the highest income generated.
The company highlights that the 2023 figures may be related to HODL, as it seems that “investors in 2023 were less likely to convert cryptoassets into cash, under the expectation that prices would rise even further given that they did not exceed previous all-time highs.” at no time in 2023, unlike 2021,” he indicated.
The prices of the main cryptocurrencies on the market, such as Bitcoin, began to experience a significant recovery in the month of October. In the case of BTC, as seen in the CoinMarketCap price chart, the cryptocurrency rose more than 54% between October and December 2023, driven mainly by positive expectations about spot ETFs.
Source: CoinMarketCap
US leads cryptocurrency gains
Despite the caution that US regulators maintain regarding cryptocurrencies, The United States led the gains generated by this alternative market in 2023.
According to data from Chainalysis, $9.360 billion of all the profits generated by cryptocurrencies last year are concentrated in this country. The United Kingdom, Vietnam, China and Indonesia rank second, third, fourth and fifth, according to the company.
Source: Chainalysis
In the case of Vietnam and China, Chainalysis highlighted that the cryptocurrency profits generated in Vietnam attract attention as this is an upper- and lower-middle-income country. In relation to China, whose profits exceed $1.150 billion, they draw attention due to the restrictions imposed by the government on commercial activity with Bitcoin and other crypto assets.
Chainalysis concluded its report by highlighting that Cryptocurrency adoption is constantly growing, especially in low- and middle-income countries, and thanks to the recovery that cryptocurrencies are experiencing, it is possible that cryptocurrency gains this year will be more in line with those recorded by the market in 2021.
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