According to data from crypto tax software provider CoinLedger, crypto investors experienced a significant turnaround in 2023, with nearly $900 in net gains on average from selling crypto. This marks a substantial improvement from the losses seen in 2022.
CoinLedger analyzed reporting from 500,000 users and found that the average crypto investor realized gains of $887.60 in 2023. This stands in stark contrast to the losses experienced in 2022, where the median investor incurred losses of $7,102.
Realized gains and losses occur when investors sell or dispose of crypto for a price different from their acquisition cost. In the United States, such disposal events typically involve transferring cryptocurrency to a wallet not owned by the investor, such as selling it on an exchange.
David Kemmerer, CEO of CoinLedger, interpreted these results as a potential sign of resurgence in the cryptocurrency market. He suggests that the positive outcomes in 2023 indicate a shift from the challenges faced in the previous year.
In 2022, the crypto market experienced significant turmoil, resulting in losses totaling over $1.5 billion due to collapses in various crypto firms, including the Terra ecosystem, FTX exchange, Celsius, and Voyager crypto lenders. However, the tide turned in 2023 with optimism surrounding the approval of spot Bitcoin exchange-traded funds (ETFs) in January.
CoinLedger noted that Bitcoin holders are less likely to sell their coins compared to investors of other cryptocurrencies. This observation aligns with the data gathered from their users.
While approximately 80% of CoinLedger’s users are based in the United States, the dataset also includes users from Australia, Canada, and other countries, providing a broader perspective on global crypto investor behavior.
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