Bitcoin rallies to new highs: Why are Indians investors pouring money into cryptocurrency? What analyst say

Bitcoin’s record-breaking rally over the past week has sparked a surge in interest from Indian investors, with major crypto platforms like CoinDCX, CoinSwitch, Mudrex, and ZebPay reporting sharp jumps in inflows and trading volumes.Combined, the platforms recorded net inflows of $150–200 million in just seven days, according to estimates. CoinDCX reported a 40% jump in daily trading volumes in July, up from $9.17 million last month to $12.82 million. CoinSwitch also saw a 22% week-on-week rise in both spot and futures trading volumes. Spot volumes alone grew by 145%, the exchange noted, according to ET.Mudrex reported that its trading volumes doubled during the week, with nearly 40% of the growth coming from tier-2 and tier-3 towns. ZebPay, meanwhile, saw a 75% surge in average weekly volumes.Bitcoin’s current growth is being driven by a mix of increasing institutional participation, improved regulatory clarity, and favorable macroeconomic conditions, according to ZebPay.While Bitcoin and Ethereum continue to dominate, ZebPay highlighted increased activity in meme tokens like Pengu and Bananas31, which have also drawn investor attention amid the broader crypto rally.“The spike was most notable between July 10 and 15, when BTC (Bitcoin) prices surged past $116K, driving higher engagement from both retail and high-value investors,” CoinDCX founding partner Mridul Gupta told ET.“BTC trading volumes in July (till July 15) touched 16.69 million, with a daily average of 1.11 million, nearly 80% higher than June’s daily average of 0.62 million,” he added.Analysts suggest the cryptocurrency market might stabilise in upcoming weeks. Bitcoin could soon break past the $140,000 mark, according to Edul Patel, CEO and co-founder of Mudrex.“Awareness around Bitcoin is significantly higher, and institutional players are now entering the space in a meaningful way. However, retail adoption remains relatively untapped suggesting that despite the current surge, there is still substantial room for upside,” he noted.CoinDCX’s Gupta urged caution, warning that, “risks such as thinning liquidity near resistance levels, surprise macroeconomic shocks (e.g., inflation prints) and rising leverage in derivatives markets could lead to heightened short-term volatility.”Still, the second half of 2025 looks promising, he said, suggesting Bitcoin may even aim for the $150,000 to $185,000 range by year-end.Meanwhile, Himanshu Maradiya, founder of blockchain firm CIFDAQ, called the recent rejection of Trump-backed crypto bills in the US “a procedural hiccup,” not a major setback.“While Bitcoin dipped around 3% post-vote and crypto stocks like Coinbase, Circle and MicroStrategy also saw declines, the broader momentum remains intact, supported by strong institutional demand,” he added.