David Edwards
In 2023, crypto investors saw a significant turnaround, earning an average of nearly $900 in profits from selling cryptocurrencies. This marked a dramatic shift from 2022, a year that devastated investors with billions in losses due to the collapse of several cryptocurrency firms. CoinLedger, a provider of cryptocurrency tax software, discovered through an analysis of data from 500,000 users that the typical investor netted $887.60 in gains last year as the sector began to bounce back.
The report highlighted a considerable improvement from the previous year, during which the average crypto investor faced $7,102 in losses. Gains or losses are considered realized when an investor sells cryptocurrency at a price different from the purchase price. In the U.S., for tax reasons, selling cryptocurrency or transferring it to a wallet not owned by the investor is usually what constitutes a disposal event.
David Kemmerer, CEO of CoinLedger, interpreted these findings as a sign of a potential comeback for the crypto market. He pointed out that after the downfall of FTX, cryptocurrency values plummeted, but the recent recovery underscores the industry’s durability.
The total value of the cryptocurrency market dropped by over $1.5 billion in 2022, a decline triggered by the failures of major players in the crypto space, including the Terra ecosystem, FTX exchange, and crypto lenders like Celsius and Voyager.
