According to a recent survey conducted by US blockchain analytics company Chainalysis, cryptocurrency investors in Vietnam are projected to accrue $1.18 billion in profits in 2023. Vietnam is one of the five Asian markets that made it to the top 10 global markets with the highest cryptocurrency profits, alongside China, Indonesia, India, and South Korea.
“We found that low and middle-income countries, especially in Asia, are the highest earners of cryptocurrency in 2023. These are places with a high level of cryptocurrency acceptance, which persists even during bear markets,” stated Chainalysis’ survey report.
Globally, cryptocurrency investors earned $37.6 billion in profits in 2023. This figure is lower compared to the $159.7 billion earned in 2021, the most recent period of a bull market. However, last year’s profits for investors showed significant recovery from the $127.1 billion loss experienced in 2022.
Both in 2021 and 2023, US cryptocurrency investors topped the global profit charts, earning $47 billion and $9 billion respectively.
The survey found that in 2023, Mainland Chinese cryptocurrency investors earned $1.15 billion in profits, ranking fourth globally despite cryptocurrency-related activities being banned in the country. This indicates that the Chinese cryptocurrency investment community is increasingly thriving. In China, investors use various methods to evade the ban and continue trading cryptocurrencies on major platforms. These platforms, including Binance, still enable users to trade cryptocurrencies despite official warnings against such activities.
The recent surge in bitcoin’s price to its 2021 all-time high has gained enormous attention from internet users in Mainland China. The world’s largest cryptocurrency has become the talk of the town on almost all major social media platforms in the country.
Since the beginning of this year, the price of bitcoin has increased by about 65%, reaching a record-breaking $73,750 in trading on Thursday of last week (March 14), according to data from Coinmarketcap website. At 9 am on March 18 (Vietnam time), the cryptocurrency was trading at $67,366.
In light of bitcoin’s recent developments, state media in China has repeatedly issued warnings.
“The recovery of bitcoin’s price cannot overshadow the inherent risks of this digital asset,” warned the state-owned Economic Daily in an article earlier this month.
Despite the domestic ban, the Chinese government is committed to supporting Hong Kong’s goal of becoming a major global digital asset hub. Hong Kong is gradually allowing individual investors to trade digital assets on licensed platforms. Last year, Hong Kong cryptocurrency investors earned $250 million in profits.
Chainalysis predicts that the positive trend in the digital currency market in 2023 will continue into 2024, especially with the approval of the US Bitcoin ETF and increased participation from institutional investors.
“If this trend continues, we forecast that investors will achieve profits equivalent to those in 2021. From the beginning of this year until March 13, bitcoin’s price has increased by 65.4%, while ether has increased by 70.2%,” concluded Chainalysis’ survey report.
