Data analysis confirms that cryptocurrency investors achieved remarkable gains of $37.6 billion throughout 2023, counteracting some of the losses incurred during the bearish market of 2022.
A Chainalysis report, provided to crypto.news, reveals that investors enjoyed profits in ten out of twelve months in 2023, with only August and September witnessing losses.
The downturn in August, primarily due to Bitcoin’s largest monthly loss of 11.28%, triggered a market-wide slump, prompting panic selling and further losses in September as Bitcoin dropped below $25,000.
Despite losses totaling $1.5 billion in August and $1.4 billion in September, gains in other months, especially in Q4, offset these losses. Bitcoin’s consecutive monthly gains from October to December, culminating in a 45% surge and a year-end close above $42,000, catalyzed profit-taking trades across the market.
Notably, the fourth quarter alone contributed over half of the total gains, with December witnessing the highest monthly gains at $8.5 billion.
While the $37.6 billion profits fall short of the $159.7 billion witnessed during the 2021 bull run, Chainalysis notes that the overall market growth in 2023 paralleled that of 2021.
The analytics firm suggests that investors in 2023 predominantly opted to hold onto their assets, anticipating further price increases as the bull run had not yet materialized.
In contrast, the bearish market of 2022 posed significant challenges, with investors facing losses totaling $127 billion. However, the ongoing bull run presents opportunities for substantial contributions to offset these losses.
Chainalysis also highlights that U.S. investors realized the highest profits at $9.6 billion, followed closely by the U.K. at $1.39 billion.