After US President Donald Trump’s announcement of imposing 100 percent tariff on goods coming from China, $ 19 billion was lost in the cryptocurrency market in a day. Indian investors are using this opportunity of decline to buy. This is reflected in the increase in volumes on cryptocurrency exchanges. India’s largest crypto exchanges like Coinswitch, CoinDCX, Mudrex saw a big jump in deposits.
Spot trading volume jumps 50x on Coinswitch
Coinswitch saw a surge in inflows last day. Spot trading volume increased by 50 times amid the volatility. CoinSwitch Balaji Srihari, VP (Business), said, “Investors are buying a lot on dips. This shows that instead of getting scared, investors are considering this dip as an opportunity to buy for the long term. This is also a sign that investors in India are maturing. They are understanding the market cycle.”
Users are using the opportunity of decline to buy
Data from CoinDCX shows that some profit booking is taking place, but many users are holding their assets or buying on dips. They are especially showing interest in the best performing tokens like Bitcoin and Ethereum. Sumit Gupta, co-founder of CoinDCX, said, “The trading volume on the platform has seen a recovery over the past week. It increased from $11 million on October 1 to $31 million on October 10. This shows that investor participation has increased as prices fall.”
Relief rally expected due to excess long positions
Activity has increased on both spot and derivatives on Mudrex. “Deposits have reached an all-time high. Our trading volume is up nearly 120 per cent since the morning of October 11. We are seeing selling pressure due to liquidations in leveraged positions across global exchanges,” said Edul Patel, co-founder of Mudrex. He said that we are seeing two-way activity on Mudrex. Currently the ratio is 60:40, which shows that long positions are more. This means that users are expecting a relief rally soon.
16 lakh users lost due to crypto market crash
More than 16 lakh traders across the world have suffered losses due to users canceling their trades in crypto. Of this, more than $7 billion was sold in less than an hour of trading. Bloomberg has given this information. This selloff caused technical problems in the world’s largest crypto exchange Binance. Due to heavy load, the pressure on its system increased significantly. However, the exchange had informed that some users may face intermittent problems or delays due to display related issues. Later the technical problem was resolved.