Crypto exchanges: Indians increase their crypto holdings as the market skyrockets

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India’s major Bitcoin exchanges see more than 100% increase in transaction volumes over the past few days, even as the value of the digital currency continued to soar with a single Bitcoin trading above the bar of $ 66,000 on Thursday, backed by U.S. regulatory clearance for an investment vehicle to enable the trading of Bitcoin futures contracts granted earlier Wednesday.

In India, this has prompted crypto investors to expand their holdings in anticipation of further gains, industry executives have said. Mumbai-based exchanges WazirX, which saw a 167% jump in trading volumes, and CoinDCX, which saw a 200-300% rise, lead the rally. While Delhi-based BuyUCoin has seen a 130% increase, and Bengaluru’s Coinswitch Kuber has seen a 100% jump since Wednesday.

On Thursday, the global crypto market reached $ 2.6 trillion for the first time in its history. Excited by the rapid gain in their Bitcoin holdings, Indian crypto investors are increasing their digital currency holdings, industry executives have said.

“Forty-five percent more buy transactions as well as a 28% increase in sell transactions have been observed recently,” said Shivam Thakral, CEO of BuyUcoin. “We have seen inactive users build new wallets around Bitcoin and other top 10 crypto assets, as well as a huge increase in crypto-SIP purchases,” he said.

This indicates a marked difference in investor behavior compared to previous cryptocurrency rallies. For example, when Bitcoin hit new highs in August this year, Indian investors were making profits. In contrast, this week, crypto enthusiasts are increasing their holdings in cryptocurrency investments, industry executives have pointed out.

As of Wednesday, Bitcoin worth almost $ 13.8 million has been traded on WazirX, while on Coinswitch Kuber the exchanges have reached $ 25 million.

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“Investors have gone from talking about the risks of crypto to the risks of not having crypto in their wallets,” said Vikram Rangala, director of crypto exchange ZebPay.

“A lot of people are reaching out and are interested in investing because they think the market is going to go up further,” said Sachin Jain, co-founder of Amesten Capital.

“This rally has juice. This is what a super cycle looks like a repeat of 2013, so we’re really excited, ”he added.

Bitcoin hit a lifetime high on Wednesday with the launch of ProShares Bitcoin Strategy exchange-traded funds (ETFs), the first such fund approved by the U.S. Securities and Exchange Commission (SEC) to invest in contracts at term on Bitcoin.

Industry trackers believe the response to the current Indian Bitcoin investor rally points to a mature market, with a large number of investors also opting for alternative coins as Bitcoin prices have climbed in arrow.

“Shortly after the Bitcoin price surge, a decent single-digit percentage increase in major platforms like Ethereum and Solana was also noticeable,” a CoinDCX spokesperson said.

Industry trackers say even FOMO or fear of running out could be at play whenever cryptocurrency hits new highs.

Crypto experts say investors are now looking for quick wins and crypto investments have delivered on their promise despite the volatility.

“There is a big trend in the DeFi (decentralized finance) world in which you earn daily based on the valuation of your assets, whether the price goes down or up, you still earn money every day on your otherwise inactive holdings. . said Santhosh Bhhandarii, co-founder of United Farmers Finance, a crypto farming platform.

Various Products Over the past few months, several crypto exchanges and platforms have introduced a wide range of products and services to make it easier for new traders to invest in the market, which has also led to widespread adoption.

For example, Siddharth Kothari, 29, chief investment strategist of his family fund Om Kothari Group, opted for the systematic investment plan (SIP) to invest in crypto. Kothari opted for SIPs because his investment is long term and he didn’t want to bother timing the market.

A few other investment firms in the United States are also planning to list their ETFs soon. Investment firm Valkyrie is also expected to launch its ETF on Friday.

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