Crypto Market Bounces Back, Reaching 38 Billion Dollars in Gains Following 2022’s 127 Billion Dollars Losses

Crypto News– According to blockchain intelligence firm Chainalysis, crypto investors reaped estimated gains of $37.6 billion last year, signaling a significant recovery from the $127.1 billion losses endured in 2022—a year marred by notable failures and bankruptcies, including prominent names like FTX and Terra-Luna.

Crypto Market Bounces Back, Reaching 38 Billion Dollars in Gains Following 2022’s 127 Billion Dollars Losses

However, the profits recorded in 2023 fell notably short of those attained during the 2021 bull market, which amounted to approximately $159.7 billion, as per Chainalysis data.

Chainalysis proposed a possible rationale for this contrast, suggesting that investors in 2023 displayed a diminished inclination to liquidate their crypto assets, foreseeing additional price escalations. This cautious approach stemmed from the fact that cryptocurrency prices did not surpass previous all-time highs over the course of the year, a departure from the dynamic witnessed in 2021.

Last year witnessed bitcoin’s value surge by over 150% amid expectations of spot bitcoin exchange-traded fund approvals in the U.S. The bitcoin price has maintained its upward trajectory this year, recently reaching an all-time high of $73,604, based on data from The Block. Additionally, the GMCI 30 Index, comprising a basket of the top 30 cryptocurrencies, has recorded a notable 63.5% year-to-date growth.