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Chainalysis Report: Global Crypto Profits Surge to $37.6B in 2023

According to a recent report released on Thursday by blockchain intelligence firm Chainalysis, the global cryptocurrency gains experienced a significant increase of $37.6 billion in 2023, after facing substantial losses in 2022.

The United States is at the forefront in terms of overall cryptocurrency profits for 2023.

The latest research from the organization shows that the total amount has significantly improved compared to the previous year’s cumulative losses of $127.1 billion. This information can be found here.

According to last year’s data, the United States significantly surpassed other countries in terms of cryptocurrency profits, bringing in a total of $9.36 billion.

In terms of monetary value, the United Kingdom ranked second after the U.S. with a combined amount of $1.39 billion. Vietnam and China closely followed with $1.18 billion and $1.15 billion respectively.

The cryptocurrency market is currently experiencing a surge, as Bitcoin has recently surpassed its all-time high. However, 2023 was also a successful year for investors.

Although both years are expected to experience growth at a similar pace, the projected increase in gains for 2023 is significantly lower compared to the total of $158.7 billion recorded in 2021.

According to researchers, the contrast can be attributed to the fact that investors were less inclined to exchange their cryptocurrency assets for cash in anticipation of even further price increases in 2023 compared to 2021.

Moreover, according to Chainalysis, although the methodology may not be flawless, it provides a reliable estimation of profits for commonly traded assets on centralized exchanges.

The Increasing Popularity of Cryptocurrencies in Asia

It was also found by researchers that several lower-income and middle-income countries (LMI), such as India, China, Vietnam, and Indonesia, experienced significant growth in the crypto market, with each country reaching more than $1 billion.

According to the report, our calculations indicate that numerous investors in these nations have profited from their adoption of the asset class.

According to Chainalysis’ “2023 Geography of Crypto Report,” six of the top ten countries in the “Global Crypto Adoption Index” last year were situated in Central and Southern Asia and Oceania. This data was cited by Chainalysis.

Crypto Price Prediction for 2024

The most recent information from Chainalysis was released shortly after bitcoin reached a new record high of more than $73,000 on Thursday morning.

The recent surge in the value of the cryptocurrency can be attributed to the authorization of almost ten spot bitcoin ETF applicants by the United States Securities and Exchange Commission (SEC) in January 2024, as reported by Cryptonews.

This development has caused a significant increase in the price of the cryptocurrency, according to reactions from crypto executives.

According to Chainalysis, as of March 13, Bitcoin and Ether have seen a significant increase in value, with Bitcoin up 65.4% and Ether up 70.2% in 2024. With the SEC’s endorsement, Chainalysis suggests that the industry may experience favorable developments in the future due to the rise in institutional acceptance of cryptocurrencies like bitcoin.

According to the report, if these patterns persist, we may witness similar developments as we did in 2021.

About Chainalysis

The blockchain forensics company utilizes on-chain data to track cryptocurrency transactions, uncovering scams, hacks, fraud, and illegal activities involving digital assets.

With over 70% of its clientele now comprised of public sector entities, Chainalysis has provided training to law enforcement officers worldwide. In 2023, it collaborated with the Internal Revenue Service’s Criminal Investigation Division to train 70 Ukrainian law enforcement officials in blockchain analytics.

Additionally, it aided Israel’s National Bureau for Counter Terror Planning in identifying and confiscating cryptocurrency linked to Hezbollah, and partnered with local law enforcement agencies in the U.S. to trace payments related to illegal fentanyl sales.