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Crypto Market Rebounds: Investors See Average Gains in 2023, CoinLedger Reports

Crypto gains in 2023: a year of recovery

In a striking rebound from the previous year's downturn, crypto investors celebrated an average gain of $887 in 2023, showcasing a significant turnaround from 2022's harsh crypto winter. According to CoinLedger, a leading provider of crypto tax software, this recovery is in sharp contrast to 2022, a year marred by the collapse of several cryptocurrency firms and resulting in an average of $7,000 in realized losses for investors. 

CoinLedger's analysis, which drew on data from 500,000 users, revealed that the average crypto investor saw $887.60 in realized gains last year, marking a notable shift in the industry's fortunes. 

The report highlighted, underscoring the volatile nature of the cryptocurrency market and the potential for rapid shifts in investor outcomes.

"This is a stark improvement over 2022 — where the median crypto investor realized $7,102 in losses," 

The role of Bitcoin and future market outlook

The resurgence of the cryptocurrency market in 2023 owes much to the broader financial ecosystem's dynamics, including the fallout from U.S. bank collapses and the optimism surrounding the launch of Bitcoin exchange-traded funds (ETFs). CoinLedger's insights suggest a growing confidence among investors, particularly Bitcoin holders, who are perceived as less likely to sell compared to those investing in other cryptocurrencies.

CoinLedger elaborated, pointing to a cautious but strategic approach to cryptocurrency investment. 

"The data supports the narrative that Bitcoin holders are less likely to dispose of their coins than investors of other cryptocurrencies," 

David Kemmerer, CEO of CoinLedger, views the data as a testament to the industry's resilience. 

He remarked:

"After the collapse of FTX, the cryptocurrency ecosystem saw a freefall in asset prices. This latest rebound highlights the resilience of the industry,". 

With 80% of CoinLedger's user base in the U.S., the analysis provides a glimpse into the recovery's global impact, including insights from Australia, Canada, and beyond, signaling a possibly optimistic future for the crypto market.