According to an ET report quoting industry sources, the buying intensity among Indian crypto buyers and traders is lower this time. This is in compared to all of the previous market falls.
According to Coinshares’ latest research, the market has seen five consecutive weeks of digital asset investment outflows. While the report expected that negative sentiment will ease, outflows hit a new weekly high of US$73 million this week.
Nischal Shetty, co-founder of WazirX told the paper,
“The buying intensity is definitely lower than the last several months. But this has less to do with India and more to do with global crypto sentiment.”
Further, Indian investors may be taking a ‘wait and see’ strategy, according to the report.
Why are they hesitating?
While there was some good news with major companies like Google exploring the crypto waters, the market is still mostly based on regulatory uncertainty. Russia’s recent announcement of a prospective crypto ban has aggravated global concerns. So much so that Bitcoin’s crucial support level of $40,000 was breached. Domestically, the approaching Budget Session on the 1st of February may have an impact on attitudes.
According to Edul Patel, the founder and CEO of crypto investment platform Mudrex,
“The selloff is in line with what we are witnessing in other asset classes like equities.”
While Indians attempt to be cautious when dealing with unpredictable assets, they may not have been as cautious while dealing with scammers. Unfortunately, according to Chainalysis, Indians would visit crypto fraud websites over 17.8 million times in 2020. While the number dropped dramatically in 2021, it remained at 9.6 million. Aside from that, earlier local reports revealed that various MLM scams arose in India as a result of the burgeoning interest in the cryptocurrency business.
Take, for example, the Morris Coin hoax or the Bitconnect extortion scheme, both of which targeted crypto enthusiasts in India.
Scam websites such as coinpayu.com, adbtc.top, hackertyper.net, dualmine.com, and coingain.app were among the most popular in India, according to the statistics.
Last year, India was said to have brought approximately 4.6 million visitors.
Related Posts – Ex-SEC Chair, Jay Clayton Believes Cryptocurrency Industry Is For Long Haul