Indian Crypto Investors Unfazed by Wobble
Investors ‘buy the dip’ in the belief that fundamentals of major tokens remain strong
Indian crypto investors are betting on the nascent industry even as investors and experts ruminate on whether the market has entered a bearish phase or not.
A drop in prices of top cryptocurrencies by 20-40% between June15 and June 22 may have egged on Indian investors to ‘buy the dip’ or average down their investments in the belief that the fundamentals of Bitcoin and other major tokens remain strong.
Tiger Global-backed crypto platform CoinSwitch Kuber and Binance-owned crypto exchange WazirX saw a 250% and 60% increase, respectively, in money deposited by account holders on June 21, and the upward trend continued on June 22, according to executives.
The latest mini collapse in crypto prices was partly because of China’s crackdown on the mining of Bitcoin and other cryptocurrencies, causing the world’s oldest token to briefly lose all gains made this year, when it fell below $30,000 on June 22.
According to Siddharth Menon, the chief operating officer of WazirX, an increase in deposits during a dip signals support from longterm investors. “A lot more people who are interested in the long-term perspective are actually coming, and we see a lot more deposits,” he said. From a high of almost $65,000 in April, Bitcoin’s value has nearly halved. Experts said this was a sign of market consolidation as many traders exit. “We may see some more corrections happening, which is great,” said Menon. “If we are able to get through that, I think we will find very strong support for the crypto market.”
Joel John, principal at digital asset investment firm LedgerPrime, said while the current price of bitcoin is lower than its all-time high, other indicators — such as fundraising, increased adoption of decentralised finance (DeFi), and new ventures in the space — remain positive.
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