Indian crypto exchanges see over 30% surge in bargain hunting as geopolitical tensions drag Bitcoin lower

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Over the past few days, Bitcoin investors liquidated over $2.5 billion worth of tokens globally, with prices briefly plunging to the $75,000 range. Closer home, investors reacted by buying the dip, as top Indian crypto exchanges reported nearly 30-90 percent jump in buying activity.

Prominent crypto exchanges such as CoinSwitch saw a clear pickup in activity with buying interest rising by nearly 30 percent as investors actively use market corrections to accumulate assets.

On Mudrex, trading volumes were up roughly 70–90 percent across products. Instead of rushing for the exits, buying continues to dominate selling, CEO Edul Patel told Moneycontrol on February 3.

CoinDCX saw a steady increase in trading volumes from 269 million USDT in December to roughly 309 million USDT by January end.

For WazirX, however, the reaction remained mixed as experienced crypto investors are buying selectively keeping the overall trading activity on the exchange moderate.

According to Balaji Srihari, VP, Business, CoinSwitch, during market volatility, investors continue to pick relatively stable tokens like BTC, ETH (Ether), and SOL (Solana) and a few large altcoins, as they remain cautious.

“We are seeing the same trend on our platform, with investors actively accumulating these assets,” he told Moneycontrol.

Nischal Shetty, Founder, Wazirx, said: “Overall sentiment remains defensive, with participants prioritising capital preservation over aggressive risk-taking.”

What’s causing the current crash?

Industry experts called the ongoing Bitcoin crash a reflection of the global trade-related uncertainties and pressure across US equities and commodities, such gold and silver, after the Federal Reserve  kept interest rates unchanged at 3.5–3.75 percent in its January meeting -- pointing to a broader risk-off environment.

“It’s a reaction to a new set of global uncertainties. Markets across the world have shifted into risk-off mode as geopolitical tensions rise around the US and Iran, and policy uncertainty in the US points to the possibility of a government shutdown,” said Mudrex’s Patel.

According to Sumit Gupta, Co-founder, CoinDCX, in the short term, price action is getting shaped by macro uncertainty, ETF flows, and the unwinding of leverage. These factors dominate during phases like this, even when "long-term fundamentals remain unchanged".

"Institutional participation, post-halving supply dynamics, and overall ecosystem maturity are still intact. What we’re seeing now looks like a period of adjustment. Liquidity is improving, buying interest is gradually returning, and confidence is stabilising," he said.

Purushottam Anand, Founder, Crypto Legal, doesn’t view this sudden price drop as a continuation of the October crash, and wouldn't recommend reading much into this crash as the prices of other asset classes, including silver and gold, too have corrected.

“As a risk-on asset, crypto is more sensitive to extreme market moves and price is also driven by the nature and fundamentals of each tokens,” he told Moneycontrol.

Will there be further downside to Bitcoin prices?

Although Bitcoin prices inched up slightly to breach the $78,000 level on February 3, crypto exchanges expect possible volatility and further downside.

Industry experts see further downside risk in the near term, if macro pressures persist and liquidity remains thin.

“At the same time, forecasts are mixed, and a rebound is possible, should risk sentiment improve and demand return, reinforcing the view that volatility and uncertainty are likely to remain elevated,” said Shetty.

Srihari added, “A more durable recovery would likely require an improvement in global risk sentiments and clearer macro stability.”

Srihari has pegged $64,000 as the “key psychological support” on the downside. “Historically, such corrective phases tend to attract strong dip-buying interest, as investors view declines as accumulation opportunities rather than a breakdown in market structure.”

Meanwhile, Vikram Subburaj, CEO, Giottus, advised Indian traders to keep size disciplined.

“They should anchor risk to the $74,500-$75,000 BTC floor and only add exposure if BTC can hold above $80,000 for more than a single session. Otherwise, this remains a “sell-the-rally/buy-the-dip carefully” tape,” he said.