Indian crypto investors rush to buy the dip as $19bn wiped off market in largest single-day crash

“Investors are actively buying the dip, which indicates growing conviction among users who see these corrections as long-term buying opportunities rather than moments of panic. It also shows how retail investors in India are becoming more mature and informed about market cycles,” Balaji Srihari, VP, Business at CoinSwitch told Moneycontrol.

CoinDCX’s data indicated that while there has been some degree of profit booking, a significant portion of users continue to hold their assets or buy into the dip, especially in top-performing tokens like Bitcoin and Ethereum.

Sumit Gupta, Co-founder, CoinDCX said, “Over the past week, total trading volumes on the platform have shown steady resilience, rising from around $11.7 million on October 1 to $31 million on October 10, indicating heightened participation during the market dip.”

For Mudrex, activity increased in both spot and derivatives. Deposits have hit an all-time high, and our trading volumes since morning of October 11 are up by about 120 percent, shared Edul Patel, Co-founder, Mudrex. A lot of the selling pressure in the market is coming from liquidations from leveraged positions on global exchanges.

“At Mudrex, we see significant two-way activity. At this point, we are having a ratio of 60:40 with higher long positions, indicating that users are expecting a relief rally soon,” he said.

Global exchanges stumble

Globally, over 1.6 million traders lost in more than $19 billion of crypto bets. More than $7 billion of those positions were sold in less than an hour of trading, a Bloomberg report said.

This had caused a temporary glitch for the world’s largest crypto exchange Binance as its systems struggled under high load. The exchange had shared that some users could experience intermittent delays or display issues. This was later fixed and all systems were restored.

“We are continuing to monitor the situation to ensure all operations continue running smoothly,” Binance said.

Why did the US-China trade war intensify?

Trump’s tariffs came in retaliation to China imposing new export controls over rare-earth minerals -- a critical material used in semiconductors, fighter jets, and other advanced technology.

While Trump initially hinted at cancelling an upcoming meeting with the Chinese President Xi Jinping, he later clarified that the meeting is on.

He called China's new export restrictions requiring export licenses for rare earth elements, an "out of the blue" move.

Crypto founders urge to diversify

In India, crypto exchange founders are urging investors to remain focussed on their long-term fundamentals and strategies, and not take any emotionally driven decisions.

“We encourage investors, especially retail participants, to continue systematic investment (SIP) strategies, conduct thorough research, focus on top, fundamentally strong tokens, and always trade through compliant and transparent exchanges like CoinDCX to ensure safety and security,” Gupta said.

Patel said, “Users are leaning towards accumulation rather than cutting their positions. It’s an encouraging sign that confidence in crypto as an asset class remains strong, even during sharp market swings.”

According to him, this phase creates an attractive entry opportunity. The market is anticipating approval of dozens of spot altcoin ETFs in the US, opening doors for fresh capital to enter the markets. “These declines could be used to gradually build long-term positions, especially in fundamentally strong assets like Bitcoin and Ethereum, before the next leg of the bull cycle begins,” he said.

Corrections are a normal part of any market, and crypto is no exception. The key is to stick to your plan: diversify wisely, invest within your means, and avoid panic selling, added CoinSwitch’s Srihari.