New Delhi Crypto trading volumes as well as user signups have seen an increase of up to 45% in recent weeks due to stability in bitcoin prices and a weak rupee.
Bitcoin price has consolidated in an increasingly narrow range, while global equity and bond markets are trading on challenging ground this week with rising tensions in sovereign debt and money markets.
On a 30-day basis, bitcoin is up about 2%. Among traditional asset markets, the S&P 500 is down 3% in the US, while in India, the BSE Sensex is down over 1% on a month-to-month basis. In the last few days, there has been a good rally in the markets. In the forex market, the rupee depreciated close to 3% in September.
BuyUcoin chief executive Shivam Thakral said that the bitcoin-rupee trading pair is gaining traction from experienced investors. “The main reason behind this trend is the depreciating rupee and the poor performance of the stock market, which is pushing investors towards digital assets. High inflation is resulting in a rapid depreciation of wealth, and investors are looking to digital assets such as bitcoin as a store of value to prevent the damage of money inflation.”
BuyUcoin saw a 40-45% increase in the bitcoin-rupee trading pair and a 30% jump in new user sign-ups in the second quarter of FY 2023. Crypto exchange Unocoin is also seeing a similar trend.
“Compared to August, we have seen a better month in September. “User registrations per day increased by 20% and volume by 40%,” said Satwik Viswanath, co-founder and CEO (CEO) of Unocoin.
This spike in crypto activity in India has come as a relief to exchanges, which are battling a crash in trading volumes due to stringent crypto taxation regulations and crypto winter. In global markets, Bitcoin and Ethereum are trading down nearly 70% from their all-time highs.
Bitcoin trading numbers in India differ from the global trend. Most risk-averse asset prices and volumes are primarily driven by global macro liquidity events. However, in the crypto market of India, the price volatility of INR-USD also affects the markets, especially the USDT-INR pair.
“Generally, there is a premium of around 5% in the Indian market due to low liquidity in exchanges due to various reasons. Moreover, the rupee has depreciated around 2% against the dollar in the last two weeks, which has increased this premium and, therefore, increased trading activity,” said Mahin Gupta, founder, Liminal, a digital wallet infrastructure platform. Told.
However, some experts are cautious about the uptick in crypto activity. There may have been an increase in crypto trading and user signups, but it has been on a low basis, according to Siddhartha Sogni, founder and CEO, Crabaco Global, a research, ratings and intelligence company focused on blockchain and cryptocurrencies.
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