Bitcoin Price Dump Doing Wonders to Indian Exchange Volumes

Key Insights:

• Bitcoin’s price tested the lower $29,000 zone but was making a slight price recovery.
• Many Indian investors, however, seemed to be buying the dip.
• Web3 development in India was outpacing development in some more developed nations.

Bitcoin’s dreaded fall from grace over the last few days was a phenomenon that left investors and traders in a shock. However, this was a time to rejoice, for Indian crypto exchange owners, as Indian crypto exchanges saw a sharp rise in trading volumes after BTC’s price retested the lower $29,000 zone.

Indian Exchange Volumes Spike

The trading volumes on Indian crypto exchanges rose after a dry spell. Bitcoin and most of the altcoins had maintained a rangebound price movement for the most part of this year; Indian crypto exchange volumes also held a low number.

As bitcoin’s price dropped by more than 56% from its all-time high price of $69,000 in November 2021, a general rise in trade volumes owing to the selling pressure was seen across markets.

In India, however, the rise in volumes was significant and persistent for almost two days, according to reports by local news media organizations. Crypto trading platforms like WazirX, CoinDCX, and Unocoin experienced a 20-75% rise in trade volumes.

In an interview, Nischal Shetty, Co-founder and CEO of WazirX said,

“We have seen overall volumes increase by 70% between May 8 and 9. There is a sentiment of ‘buying the dip’ prevailing in terms of trading as buyers have been marginally dominating the market.”

He further added that such buying behavior illustrates that there is still investor confidence in the market even at present levels.

Web3 Developments in India Pacing up

A recent report highlighted that the number of Web3 developers who reported their locations increased the most in India and Russia, rising to 5.3% and 4.3% of the market share respectively. On the other hand, the U.S. has lost nearly 20% market share since 2015.

Notably, with rising Web3 and blockchain development in the Indian subcontinent, a rise in trade volumes during a larger market dip signifies participants’ confidence in the market. This also meant that Indians gave in to the ‘buy the dip’ sentiment.

Minal Thukral, Executive Vice President, Growth and Strategy at CoinDCX said,

“Volatility always leads to an increase in the volume on platforms like ours. We are seeing an increase in the volume of users who are buying the dip and an increase in users who are selling.”

That said, trading volumes on Indian crypto exchanges have suffered since the new tax regime was introduced on April 1. However, it seems like now Indians are taking more risks which also signifies a general interest in risky asset investments in the nation.