Bitcoin's recent surge to nearly $79,000 has sparked a significant uptick in trading activity across India's cryptocurrency exchanges, with platforms reporting substantial increases in both spot and derivatives volumes. The rally, which began on August 19, has been driven by a combination of US policy signals, institutional inflows, and a broader risk-on sentiment in the crypto market.
According to a Moneycontrol report, major Indian exchanges including CoinDCX, CoinSwitch, WazirX, Mudrex, and Giottus have all witnessed heightened trading activity. CoinDCX saw its spot trading volume more than double between August 19 and August 21, rising from roughly $5-6 million to approximately $13 million. On August 23, the exchange's average daily volume stood at about $11.7 million USDT. Bitcoin trading volumes on CoinDCX also surged, with CEO Sumit Gupta noting that BTC volume jumped from around $300,000-$700,000 earlier in the period to $2 million on August 21.
Mudrex reported a 20% week-on-week increase in spot volumes, indicating stronger participation from traders seeking exposure to the rally. Derivatives activity was even more pronounced on some platforms. WazirX said daily futures volumes increased almost sevenfold between August 16 and August 22, while the number of active futures traders also rose. Giottus reported a 22% increase in spot volume and a 31% rise in futures volume, with CEO Vikram Subburaj noting that average volume per trader increased by approximately 10% in spot and 11% in futures after accounting for new participants.
US policy and liquidity expectations fuel the rally
The Bitcoin rally began on August 19 after US Treasury Secretary Scott Bessent announced an increase in the maximum size of certain long-dated Treasury buybacks. Markets interpreted this as a potential liquidity signal, which initially pushed long-term yields lower and weakened the dollar, creating a more favorable environment for Bitcoin. Subburaj highlighted that this policy shift was a key catalyst.
The rally was further supported by developments in US cryptocurrency regulation. President Donald Trump met with crypto executives and called for Congress to pass the CLARITY Act, while rules under the GENIUS Act are expected to be finalized before November. These regulatory signals have bolstered investor confidence.
Institutional demand also strengthened, with US spot Bitcoin ETFs recording around $1.92 billion in net inflows during the week. Once Bitcoin broke out of its previous trading range, ETF inflows combined with the liquidation of more than $4 billion in short positions to accelerate the advance. This momentum has been closely tracked by market participants, as noted in our recent coverage of Bitcoin's resilience above $78K.
Altcoins see broader participation
The rally extended beyond Bitcoin, with Indian exchanges reporting increased interest in several major tokens. CoinSwitch said Ethereum, XRP, Dogecoin, Shiba Inu, and Solana attracted strong participation. Balaji Srihari, vice president of business for India at CoinSwitch, noted that broader participation was encouraging because it suggested the move was not limited to Bitcoin.
Mudrex also reported increased interest in gold and silver-linked crypto assets as traders sought exposure to the broader market. CoinDCX said trading volumes for HYPE increased from below $25,000 to nearly $190,000. Giottus reported that XRP was particularly sensitive to shifts in US regulatory expectations, while Solana benefited from renewed risk appetite. This altcoin strength mirrors the recent surge in Ethereum, which saw a record short squeeze and ETF inflows, as we highlighted in our analysis of Ethereum's 25% jump.
Cautious outlook despite strong volumes
Despite the stronger activity, industry participants remain cautious about the rally's durability. Prateek Gupta, head of business at Mudrex, said it was too early to determine whether the move was sustainable and warned that a rally driven mainly by leverage or a single headline could lead to a pullback toward $65,000. CoinSwitch's Srihari said Bitcoin would need to hold above $75,000 and decisively break the $80,000 resistance level for the recent momentum to gain further confirmation.
As Bitcoin continues to trade near these key levels, traders are closely watching for signs of sustained institutional interest and regulatory clarity. The broader crypto market's response to these factors will likely determine whether the current rally can be maintained or if a correction is imminent.
This article is for informational purposes only and does not constitute financial advice.
