China Climbs Crypto Gains Chart Of More Than $1 Billion in 2023, U.S. Leads Amidst Global Market Shifts

A recent survey by Chainalysis shows that Chinese investors netted US$1.15 billion in cryptocurrency gains in 2023, moving up in the global rankings despite stringent regulations against virtual assets in mainland China. This achievement underscores the enduring interest and resilience of the cryptocurrency community in China, even as the global market experiences fluctuations.

Chinese Investors Secure Top Gains in Global Crypto Market, Survey Reveals

According to a new survey, investors in mainland China made some of the largest gains in the global cryptocurrency market last year, as strong interest remains in the country despite a global rebound in the volatile virtual asset.

An international survey published earlier this week by New York-based blockchain research firm Chainalysis (via SCMP) revealed that Chinese cryptocurrency investors earned US$1.15 billion in 2023, placing them fourth behind the United States, the United Kingdom, and Vietnam.

The mainland moved up one spot from its previous ranking in the Chainalysis survey, which was published in 2021 during the last cryptocurrency bull market. Chinese investors earned more than $5 billion at the time.

According to Chainalysis, Hong Kong cryptocurrency investors made US$250 million in gains last year. In 2021, they earned US$1.3 billion.

Overall, cryptocurrency investors worldwide earned US$37.6 billion in 2023, down from US$159.7 billion during the 2021 bull market, Chainalysis divulged. Still, last year's gains represent a significant improvement from 2022, when losses totaled US$127.1 billion.

US Leads in Crypto Gains Amid China's Thriving Market Despite Bans

According to Chainalysis, US cryptocurrency investors made the largest gains in the industry in 2021 and 2023, totaling US$47 billion and US$9 billion, respectively.

The gains made by mainland investors last year demonstrated how the country's community of cryptocurrency enthusiasts has thrived despite Beijing's strict prohibition on all activities involving the virtual asset.

Those exchanges, including Binance, have permitted trades by mainland users despite warnings on their websites against such activity.

Bitcoin's recent price surge has piqued mainland internet users' interest, making the world's largest and most valuable cryptocurrency a hot topic on all major Chinese social media platforms.

Bitcoin's value has risen by 50% since the beginning of the year, reaching a record US$71,677 last Monday.

However, the price rally has prompted fresh warnings from Chinese state media. According to an article published by the state-owned newspaper Economic Daily earlier this month, a rebound in bitcoin prices cannot "hide" the digital asset's underlying risks.

In contrast, Beijing has pledged support for Hong Kong's ambition to become a major hub for virtual assets. The city has taken steps to allow retail investors to trade virtual assets through licensed platforms.

So far, the positive trends of 2023 have carried over into 2024, with bitcoin already reaching all-time highs as a result of spot bitcoin exchange-traded funds activity in the United States and increased institutional adoption, says Chainalysis.

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

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