Over the last six months, Bitcoin has experienced a fall in value. Yet Indian investors are flocking to buy this drop.
Indian platforms are experiencing a surge in buying activity, with some up as much as 90%. Behind this has been activity that suggests a methodical, controlled approach of regularly placed orders and thoughtful limits. All of this is happening at a time of risk-off sentiment towards cryptocurrencies in a cooling global economy.
The Bitcoin Buying Spree
Bitcoin has endured a long-lasting dip that began in October 2025, after it reached record highs above the USD $124,000 mark. Since then, it has spiralled into a freefall, losing almost half of its value. As of 3rd April 2026, it stands at $66,738, with the Bitcoin INR level sitting at 6,207,954. Other cryptocurrencies have followed a similar fate, with ETH dropping to 191835 from a rate of 416011 six months before.
Sumit Gupta has announced that he believes “Indian investors are maturing. They’re no longer driven purely by sentiment or headlines; instead, they’re focused on fundamentals and the long-term potential of the asset class.” At the same time, the Indian Rupee has dropped to low levels against the USD, hitting points as low as 92 per USD.
A History of Indian Investing
Indian investors have an on-chain record of rushing in headfirst. In 2017, the country was wrapped up in a cryptocurrency frenzy. Despite having no formal regulations on the use of digital assets, the central bank began issuing weeks of warning, which included statements telling the users, holders, and traders of virtual currencies, including Bitcoin, of economic, financial, and security-related risks. The demand was so high that Bitcoin prices ended up being 20% more than the rest of the world on exchanges, and estimates were that around 30,000 citizens could be trading at any one time.
This happened again in 2021, when many Indian investors jumped frantically onto the crypto wagon, voraciously acquiring even the newest and most unstable of tokens. Now, they are aiming for much more strategic, long-term plans with major tokens like Bitcoin.
Currently, cryptocurrency in India is treated as a Virtual Digital Asset for legal reasons, and is not recognised as legal tender. A tax of 30% is placed on cryptocurrency gains, with no loss offsets and a 1% tax deducted at the source. Indian regulation also maintains that exchanges have strict verification procedures and ensure that accurate reporting is done and maintained. This is for the purpose of anti-money laundering and to combat terrorist financing.
The Current State of Bitcoin
Bitcoin has been hit hard recently by the current conflict in the Middle East. Further news that signalled a possible ongoing issue in the conflict caused it to drop below the $66,000, wiping out the marginal gains from the previous day. Only a short-lived rebound dragged it across the $67,000 mark midday on April 2nd, before it sank once more.
Binance noted just how much of an impact this conflict is having. They stated that geopolitical deadlines remain the primary volatility catalyst. Markets are hyper-focused on an April 6th strike deadline regarding the Iran conflict, which is creating a high risk of expectation reversals for risk assets. Near-term price action will remain decoupled from traditional fundamentals until the binary risk of military escalation is resolved.
This also impacted its market capitalization, pulling it back to $1.33 trillion. Around $48 million in leveraged positions were liquidated in a 12-hour stint, with $103 million further across 24 hours. In the wider cryptocurrency economy, the market shrank to $2.38 trillion, with liquidated funds hitting $440 million.
A Climate of Fear Remains Elsewhere
A climate of hesitation remains, with Bitcoin being pulled in multiple directions. Data showed that demand was down by 63,000 coins last month. There have been several selling signals, particularly from whales, who have been offloading voraciously. Even miners such as Riot Platform have been selling, along with the Kingdom of Bhutan. Other corporate Bitcoin treasury companies, like Genius Group, have liquidated their entire supply of Bitcoin. This trepidation has been mirrored in US Bitcoin ETF products. Around $174 million in net outflows were reported on the 1st of April.
None of this seems to be inspiring confidence in Bitcoin elsewhere across the globe. In the United States, Binance highlighted how extreme fear and deleveraging dominate the current market structure. The February drawdown to a US $2.36 trillion market cap pushed the Fear and Greed Index to a historic low of 5. While five consecutive months of negative returns represented a rare bear streak, leveraged metrics indicated that the deleveraging process is ongoing but still unfinished.
In 2026, India will continue to tighten its regulations on cryptocurrency. This will be seen in the Union Budget 2026, which will strengthen compliance for companies over discrepancies in the reporting of transactions. This is to curb tax evasion in the cryptosphere. While some may see this as further restrictions, it also signals the seriousness with which India is taking digital assets. It also shows a further increase in institutional adoption.
This could lead to new developments, perhaps in areas such as stablecoins and smart contract usage. This is something the GENIUS Act in the United States has aimed to address, and it would not be out of the question for other similar world economies like India to follow suit.
