The rise in Bitcoin’s value has breathed new life into crypto exchanges in India, reaching the highest trading volumes in ten months, as per Business Line.
In February, trades on Indian exchanges CoinDCX, WazirX, and BitBNS hit $2.6 million, $3.4 million, and $7.8 million, respectively, marking their highest volumes since June 2023.
While these figures are impressive, they still fall short of the record highs seen in 2021. These exchanges faced challenges with low trading volumes after the bear market of 2022-23, worsened by the government imposing a 30% tax on cryptocurrency trading.
According to Crebaco, a cryptocurrency research firm, deposits increased by 80% in the last three months, with a 100% rise in total transactions and a 200% increase in sign-ups during the same period.
Bitcoin is currently valued at $65,000, about 6% lower than its peak in November 2021. The Indian crypto market is thriving due to the ongoing Bitcoin rally, driven by increasing institutional interest.
BlackRock’s iShares Bitcoin Trust has gathered nearly $10 billion in assets in just seven weeks. The introduction of Bitcoin ETFs has been a game-changer, making crypto accessible through familiar investment channels. This increased accessibility is contributing to the overall excitement, according to Sumit Gupta, co-founder of CoinDCX.
The surge in crypto demand is fueled by new exchange-traded funds buying at a rate outpacing long-time holders’ willingness to sell. Bitcoin, the largest cryptocurrency, has gained 50% this year, with most of the rise occurring in the last few weeks as inflows into US-listed bitcoin funds surged. This bullish trend is expected to continue as Bitcoin undergoes a halving cycle in April, potentially driving up demand and prices even further.
