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According to CoinDCX, Indian cryptocurrency investors have been acquiring bitcoin and various layer 1 tokens while maintaining a diverse portfolio.
Mumbai’s CoinDCX reports a decrease in demand for bitcoin.
Key points:
- Indian cryptocurrency investors are taking advantage of the price dip in bitcoin and other layer 1 tokens while keeping a well-rounded portfolio, as stated by CoinDCX to CoinDesk.
- Traders have evolved, moving away from the speculative memecoins that were prevalent in 2021.
- Despite the decline in bitcoin’s price, CoinDCX has experienced an increase in trading volumes as the exchange remains dedicated to adhering to regulatory requirements.
Indian cryptocurrency participants are moving past speculative tendencies and are capitalizing on the bitcoin price like experienced investors, as reported by CoinDCX to CoinDesk.
"Indian investors are evolving. They are no longer motivated solely by market sentiment or news; they are now concentrating on fundamentals and the long-term potential of this asset class," stated CoinDCX’s CEO Sumit Gupta in an email.
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"We observe changes in their actions: regular systematic investment plans (SIPs) for bitcoin, strategic market orders, and carefully placed limit orders," he continued, mentioning ether , solana and XRP as additional favorites.
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This recent behavior stands in stark contrast to the tumultuous trading of 2021, when inexperienced investors were drawn to 100x gains from clones and other lesser-known tokens.
"It’s evident that participation is increasingly becoming more calculated and methodical rather than impulsive. More investors are recognizing bitcoin as a means for portfolio diversification and long-term wealth accumulation," Gupta stated.
Bitcoin’s value has fallen to $75,000 after reaching a peak of over $126,000 in October. The overall market has seen similar trends, with altcoins experiencing more significant declines. Additionally, the Indian national rupee (INR) has weakened against the U.S. dollar in recent weeks, hitting an all-time low of 92 per USD.
However, trading volumes have surged on the exchange, increasing from approximately $269 million in December to around $309 million in January, Gupta noted, emphasizing that the trading activity has been more balanced. "We observe profit-taking by short-term traders who acquired assets near recent lows, while simultaneously witnessing steady accumulation by long-term investors who view these price levels as an opportunity," he added.
India, recognized as the fastest-growing major economy globally, maintains a cautious regulatory approach toward digital assets, categorizing them as taxable Virtual Digital Assets (VDA) instead of legal tender. The recent annual budget sustained a 30% tax on crypto profits without loss offsets, along with a 1% transaction tax deducted at the source.
Regulations from the Financial Intelligence Unit also require strict KYC protocols, including accurate and regular reporting of user transactions by exchanges. These initiatives are designed to enhance compliance and combat money laundering and terrorist financing.
"The Union Budget 2026 aims to strengthen compliance for cryptocurrency platforms regarding lapses in transaction disclosures, targeting tax evasion in virtual digital assets," Gupta stated.
We remain fully dedicated to collaborating with policymakers to foster the development of a secure, innovative, and globally competitive VDA ecosystem as the regulatory environment continues to evolve.
