2023 is being evaluated as a strong comeback year for the cryptocurrency market after a difficult period, with both asset prices and investor sentiment recovering strongly throughout the year.
However, will investors make big profits in this context? This is the key question for the research just published by Chainalysis on March 14th.
Global investors earned $38 billion from cryptocurrencies
According to Chainalysis data, the total profits of cryptocurrency investors worldwide in 2023 reached $37.6 billion.
Although this figure is still much lower than the nearly $160 billion profit in 2021, it shows the strong recovery of the cryptocurrency market after a challenging 2022. In the “nightmare” year of 2022, investors lost $127 billion.
According to Chainalysis, the interesting thing is that the profits in 2023 are lower than in 2021 despite the rise in asset prices during these two periods.
“A possible explanation is that investors did not sell too much in 2023 because they expect prices to continue to rise and in the context where the prices of many cryptocurrencies have reached all-time highs,” shared analysts at Chainalysis.
Vietnamese investors made good profits from cryptocurrencies
According to Chainalysis’ research, US investors made the most profits from cryptocurrencies in 2023, with estimated profits of $9.36 billion. The UK ranked second with $1.39 billion in profits.
Vietnam ranks third with an estimated profit of $1.18 billion, which is a notable achievement. “It is interesting that some countries with average incomes also appear in the list of top profits in 2023,” evaluated Chainalysis.
Asia is a region that gathers many cryptocurrency investors, in which Vietnam, China, Indonesia, and India all earn more than $1 billion and are all among the top 6 countries with the highest profits.
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Estimated profits from cryptocurrencies by country
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As emphasized in a previous report on the cryptocurrency market, Chainalysis revealed that people in countries with average incomes, especially lower-middle-income groups, seem more likely to accept cryptocurrencies. The level of acceptance of cryptocurrencies in these countries remains high despite the “nightmare” of 2022.
“The large profits show that many investors in these countries have benefited from accepting cryptocurrencies, at least for now,” shared Chainalysis.
What will 2024 be like?
However, what 2024 will be like is still a big question. Currently, the rising trend of 2023 continues into 2024 and is even stronger.
Major cryptocurrencies like Bitcoin reached a record high of $73,000 after spot Bitcoin ETFs were approved and institutional investors gradually accepted this investment channel.
“If this trend continues, investors could make huge profits like in 2021,” predicts Chainalysis. As of March 13th, Bitcoin has increased by 65.4% compared to the beginning of the year, while Ethereum has surged by 70.2%.
