Crypto Trading, User Registrations See A Jump In India On Bitcoin Stable

Bitcoin prices have consolidated in an increasingly tight range, even as global stock and bond markets continued to tread difficult ground with mounting evidence of tensions in sovereign debt and currency markets this week. .

On a 30-day basis, bitcoin (BTC) is up around 2%. In traditional asset markets, the S&P 500 in the US is down 3%, while in India, the BSE Sensex is down more than 1% on a monthly basis. These markets have seen a decent spike in the past few days. In the foreign exchange market, the rupee (INR) fell almost 3% in September.

BuyUcoin CEO Shivam Thakral said that the BTC-INR trading pair is attracting a lot of seasoned investors to the platform.

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“The main reason for this trend is the falling Rupee and the underperformance of the stock market, which is pushing investors towards digital assets. High inflation leads to rapid depletion of wealth and investors view digital assets like bitcoin as store value to prevent inflation from damaging their wealth,” Thakral said.

BuyUcoin saw a 40-45% spike in the BTC-INR trading pair and a 30% increase in new user registrations in Q2 FY2023.

Another crypto exchange Unocoin is experiencing a similar trend.

“Compared to August, we saw that September was a better month. User registrations per day increased by 20% and volumes increased by 40%,” said Sathvik Vishwanath, co-founder and CEO of Unocoin.

This spike in crypto activity in India has come as a respite for exchanges, which have faced a crash in trading volumes due to rigid crypto taxation standards and the crypto winter.

In global markets, bitcoin and ethereum have plunged around 70% from their respective all-time highs.

The number of bitcoin transactions in India currently differs from its global counterpart. Currently, most prices and volumes of risky assets are determined primarily by global macroeconomic liquidity events.

However, in the Indian crypto market, INR-USD price volatility is also impacting the markets, especially the USDT-INR pair.

“Generally, the Indian market has a premium of around 5% due to lower liquidity in the exchanges for various reasons. Additionally, the Rupee has lost around 2% against the US Dollar over the past two weeks, amplifying this premium and thus the surge in business activity,” said Mahin Gupta, Founder of Liminal, an infrastructure platform of digital wallet.

However, some experts are cautious about the rise in crypto activity in India.

According to Sidharth Sogani, Founder and CEO of CREBACO Global, a research, rating and intelligence firm focused on blockchain and cryptocurrencies, crypto trading and user registrations may have seen some increase, but it happened on a weak basis.

Due to a 30% flat tax on capital gains from crypto assets and a 1% withholding tax on each crypto transaction, as well as a drop of up to 80 % of digital asset prices, trading activity on crypto exchanges has fallen 80-90% since April 1, 2022.

However, Sogani sees the sentiment in the crypto market improving, especially bitcoin in the near future.

The expert sees bitcoin remaining stable despite tough inflation and hitting the $30,000 level in the next two to three months.

“Basically, bitcoin is very strong. There are a few basic settings that work in favor. Transaction fees are at an all-time low, transaction speed is good, and the difficulty level and hash rate level are at an all-time high. The number of wallets containing bitcoin is also increasing. When the fundamentals are great and the price isn’t doing much, that’s a really good sign,” Sogani said.

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Crypto Trading, User Registrations See A Jump In India On Bitcoin Stable

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