Americans draw $4 billion in bitcoin last year

According to Chainalysis estimates, US traders secured $4.1 billion in revenue from bitcoin transactions last year. This is three times more than the next highest country. The New York-based research firm has published a report ranking the top 25 countries with the greatest realized gains.

Whether it's the belief that cryptocurrencies can be an inflation hedge against rampant central bank fiat printing, or the simple desire to make quick money with famous volatile assets, cryptocurrencies have captivated retail and professional traders around the world.

According to Chainalysis researchers, “Investors from almost all countries saw the biggest increase at the end of the year. “It was really unreasonable at the time because US investors got most of their profits from Coinbase activity.”

China came in second with $1.1 billion in revenue, followed by Japan, the United Kingdom, Russia and Germany. Small emerging market countries such as Vietnam, Turkey and the Czech Republic also made it into the top 25.

Chainalysis does not know where individual trading parties are due to the decentralized nature of the technology, but estimates are made by tracking transaction data in crypto services.

The Cryptocurrency trading craze started late last year when high-profile investors like Paul Tudor Jones supported Bitcoin. The price quadrupled in 2020 and was close to $29,000 year-round.

The bull market plunged only in May as prices surged above $60,000 in early 2021, bolstering regulatory scrutiny in China and pouring criticism from Elon Musk. Bitcoin fell 4% on Tuesday, trading near $33,000.