According to data shared by Crebaco, a cryptocurrency research firm, trades on Indian exchanges CoinDCX, WazirX and BitBNS hit $2.6 million, $3.4 million and $7.8 million, respectively, in February clocking their highest ever volumes since June 2023.

However, the volumes are still way short of their historic highs of 2021.

These exchanges had been struggling with low trading volumes since the bear market of 2022-23, compounded by the Centre imposing a 30 per cent tax on cryptocurrency trading.

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“Deposits increased by 80 per cent in the last 3 months compared to the previous three months. There was a 100 per cent increase in total transactions across platforms in the last three months. There was also a 200 per cent increase in sign-ups during the same period,” Menon added.

Bitcoin is currently trading at $65,000 — around six per cent lower than its all-time high reached in November 2021. The Indian crypto market is experiencing a high, riding the wave of Bitcoin rally. This surge is largely driven by growing institutional interest.

BlackRock’s iShares Bitcoin Trust, for example, has accumulated close to a staggering $10 billion in AUM (assets under management) in just seven weeks. The launch of Bitcoin ETFs has been a game-changer, allowing traditional investors to access the crypto through familiar channels. This wider accessibility is likely contributing to the overall excitement, said Sumit Gupta, co-founder of CoinDCX.

The surge in cryptocurrency demand is driven by new exchange-traded funds purchasing it at a rate far surpassing the willingness of long-time holders to sell their Bitcoin. The largest cryptocurrency by market value has gained 50 per cent this year and most of the rise has come in the last few weeks when inflows into US-listed bitcoin funds surged. This bull run is expected to sustain as Bitcoin goes through a halving cycle in April, which could potentially increase the demand as well as the price for Bitcoin even further.

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