Bitcoin at $100,000: Milestone likely to boost Indian investors' rush

At present, industry estimates suggest that India has around 40 million active crypto investors

The recent Bitcoin rally, which saw the cryptocurrency surge past the $100,000 mark on Thursday, is drawing Indian investors in droves. Cryptocurrency platforms in India are experiencing a significant uptick in activity and user sign-ups, driven by the optimism surrounding “crypto-friendly” Donald Trump’s U.S. presidential election victory. 

 

“We’ve seen a five to six times increase in trading volume on our platform,” says Balaji Srihari, business head at CoinSwitch, a major crypto exchange. “Every metric — from new customer acquisition to people visiting the platform, people trading on our platform, and the trading volume — has surged, with some metrics climbing by as much as ten times.” 

 

With rise in the VDA’s (virtual digital asset’s) value, more investors are turning to it as a feasible investment opportunity. Trump’s appointment of crypto advocate Paul Atkins to replace Securities and Exchange Commission Chair Gary Gensler, who had cracked down on digital assets following the 2022 market crash, is expected to further fuel the rally. 

 

Sumit Gupta, co-founder of CoinDCX, a leading crypto exchange, notes the increase in user registrations. “We’re seeing a five to six times expansion in new user sign-ups. Trading volumes have increased by over 300 per cent due to the growing interest in this rally,” Gupta explains. 

 

Founders of crypto firms anticipate the rally will continue through the first half of 2025, supported by a steady influx of new users. 

 

“We’re seeing a lot of old users coming back, checking their portfolio, and either buying or selling some of it. These are known as reactivations. Also, I expect that a lot of new users will come in over the next few months,” said Edul Patel, co-founder and chief executive officer (CEO), Mudrex. 

 

For the second consecutive year, India has continued to lead the way in global cryptocurrency adoption in 2024, according to a report from blockchain analytics firm Chainalysis. At present, India has around 40 million active crypto investors, suggest industry estimates. 

 

Indian investors are now viewing Bitcoin as a viable option for wealth creation, said Thangapandi Durai, CEO, Koinpark. “For Indian investors, this (the $100,000 milestone) is a prime opportunity to recognise that cryptocurrencies offer substantial capital appreciation potential. Bitcoin, often referred to as ‘digital gold,’ provides a hedge against inflation while serving as a store of value.”

 

Some experts warn investors to approach cryptocurrencies with caution due to market volatility and regulatory uncertainty. The Reserve Bank of India (RBI) maintains its cautious stance, warning that cryptocurrencies pose risks to the financial and monetary stability of the country. 

 

"Investors should conduct proper research and not view cryptos as a shortcut to 50x or 100x returns within months. A disciplined, long-term approach is necessary,” advised Purvang Mashru, senior quantitative research analyst at 1 Finance. 

 

(Inputs from Surbhi Gloria Singh in New Delhi)