Last year, Americans made a lot of money in the Crypto industry
Amidst the peak months of the COVID-19 pandemic, interest in crypto surged in America. Now a lot of traders in the United States are witnessing that interest leads to profits. Americans have been seeing their bitcoin holding return over $4 billion to initial holders.
Bitcoin loved by the Americans
Meanwhile bitcoin could be suffering with its price as of now, it recently concluded what is debatably its largest and longest bull run in 12 years. In March 2020, the coronavirus pandemic began to strike the global financial markets. The world has suffered as the economy has been forced to shut down. This caused stocks and a lot of businesses to fall to record lows.
The cryptocurrency suffered very much. That time, it fell below the $4,000 mark after it had been trading for over $10,000 in the previous month. Although over a year later, the currency was trading at a new all-time high of around $64,000 each unit. This suggests that the asset was enjoying a record comeback at least.
During that period, Americans have been frantic because of inflation and other financial problems that the country faces. Suddenly, they lost interest in fiat currencies and started turning to bitcoin. They believe that it is a hedge tool against more economic problems.
Crypto during the Pandemic
Now, the Americans that invested in Bitcoin during the COVID pandemic have seen their investments grow by $4.1 billion as of now. It is over three times the amount of profit made by BTC investors from China, which has seen $1.1 billion in returns.
A director of research at Chainalysis stated that one of the big contributing factors to that large number was the fact that a lot of institutions based in America found themselves attracted to Bitcoin.
“We know from past research that there is growing institutional investment in crypto assets, notably in the U.S. Institutional investors work with large quantities of cryptocurrencies and have been stockpiling bitcoin over the past year. The gains in the U.S. mostly came in toward the end of the year and, therefore, we suspect many institutional traders who fit this profile took in gains as the price rose in late 2020.”
Kim Grauer – director of research at Chainalysis
Kim continued that a lot of Americans that invest in Bitcoin had an exit plan. This also contributed to the high earnings that they have seen. Aside from America and China, Japan, U.K, Russia, and Germany made it to the list of top six countries that have the most bitcoin gains.
A lot of Up-and-Down Countries
Kim states:
“We can start to see country-level variations in the way gains are taken. For example, we know that certain countries with a robust cryptocurrency ecosystem, such as Vietnam, took in outsized gains given the overall size of the economy.”
📣 Cryptonetwork.News is now on Telegram. Please click [here] to join our channel and stay updated with the latest Cryptocurrency, Blockchain, and Cryptomining headlines.
No Comment