China’s cryptocurrency investors made gains of more than US$1 billion in 2023

Hong Kong cryptocurrency investors made profits of $250 million last year, according to Chainalysis. In 2021, they earned $1.3 billion.

Cryptocurrency prices against the US dollar are displayed on a screen in Hong Kong in this file photo from February 29, 2024. Photo: Bloomberg

Overall, cryptocurrency investors around the world recorded total gains of $37.6 billion in 2023, up from $159.7 billion during the 2021 bull market, according to Chainalysis.

Still, last year's profits represent a significant recovery from 2022, in which losses reached $127.1 billion.

In both 2021 and 2023, American cryptocurrency investors made the biggest profits in the industry, according to Chainalysis, when they earned $47 billion and $9 billion, respectively.

Profits made last year by mainland investors showed how the domestic community of cryptocurrency enthusiasts has continued to thrive, despite Beijing's rigid stance against all activities related to the virtual asset.

China's underground cryptocurrency traders appear more important than ever to Binance's future

Cryptocurrency trading through several major exchanges has remained active in mainland China, as claimed by local enthusiasts. employ a variety of solutions and circumvent loosely implemented restrictions.
These exchanges, including binancehave allowed exchanges by mainland users, despite warnings against such activity being displayed on their sites.

Chinese social media is excited as bitcoin prices continue to rise

However, this rise in prices has also sparked new warnings from Chinese state media. A rally in bitcoin prices cannot “hide” the underlying risks of the digital asset, state newspaper Economic Daily said in an article published earlier this month.
On the contrary, Beijing has pledged support for Hong Kong goal become a major hub for virtual assets. The city has taken steps to allow retail investors to trade virtual assets on licensed platforms.
So far, the positive trends from 2023 have carried over into 2024, and Bitcoin has already hit all-time highs in the wake of spot bitcoin exchange traded fund activity in the US and greater institutional adoption, according to Chainalysis.

“If these trends continue, we may see gains more in line with what we saw in 2021,” Chainalysis said. "As of March 13, bitcoin is up 65.4 percent and ether is up 70.2 percent."

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