Bitcoin is strengthening its hold on India’s crypto market despite global price volatility. On CoinSwitch, Bitcoin’s share of spot-trading volume doubled to 16.7 per cent in the first half of 2026. Many traders bought the asset, even as prices fell 32 per cent. Investors also used derivatives to gain exposure.
Bitcoin is strengthening its position in India’s cryptocurrency market, gaining a larger share of spot-trading volumes and attracting more traders even as price volatility, offshore exchange activity and derivatives reshape how investors access digital assets.
On CoinSwitch, for instance, Bitcoin’s share of total crypto spot-trading volume more than doubled to 16.7 per cent in the first half of 2026 from 7.6 per cent in H1 2025. The proportion of spot traders buying or selling Bitcoin also increased to 48 per cent from 35 per cent in H1. Nearly one in two spot traders on the platform bought or sold Bitcoin during the period, indicating broader participation, according to Balaji Srihari, Vice-President – Business, India, at CoinSwitch.
Challenges persist
However, this increase in Bitcoin’s share comes against a challenging market backdrop. The cryptocurrency fell about 32 per cent in H1 2026, ending June at around $59,500, according to Prateek Gupta, Head of Business at Mudrex. Its price was then more than 50 per cent below its October 2025 all-time high (ATH) of approximately $126,080, amid weak demand, sustained selling pressure and outflows from Bitcoin exchange-traded funds (ETFs).
“On Mudrex, Bitcoin trading volumes remained broadly steady through H1, in line with the wider market environment. Since July, Bitcoin volumes on the platform have more than doubled compared with previous quarters, alongside a price breakout. There was also a significant increase in the number of Bitcoin holders,” Gupta said.
The trend suggests that Bitcoin’s importance in Indian crypto portfolios is increasing, although activity across platforms is not uniform. A higher share of trading does not necessarily translate into an equivalent rise in absolute volumes.
Using derivatives
India’s participation in Bitcoin’s role extends beyond trading on domestic exchanges. On WazirX, the BTC/INR contract was the most-traded futures contract every month from June to September 2026, according to Rajagopal Menon, Vice-President at WazirX. This indicates that investors are using derivatives to gain exposure to Bitcoin alongside buying and selling the asset in spot markets.
“The 1 per cent tax deducted at source (TDS) on crypto transactions has created friction for frequent traders on Indian platforms, while some users continue to access offshore exchanges,” he said.
An Esya Centre study found that Indians traded more than $42 billion on offshore exchanges between July 2022 and July 2023, accounting for over 90 per cent of their total trading volume during the period, according to Piyush Walke, Derivatives Research Analyst at Delta Exchange.
Menon said comparisons between Indian and global Bitcoin activity must account for both spot and derivatives trading, while keeping the two categories separate. Exchange trading volumes should also not be confused with on-chain transactions, which include transfers between users, custody movements and exchange wallet management.
Crypto adoption expands
India is a significant market for crypto adoption. According to Walke, India ranked second globally in crypto transaction volume and first in Chainalysis’ 2025 Global Crypto Adoption Index. Bitcoin remains among the most widely held digital assets across major Indian cities.
Participation is also extending beyond large urban centres. More than 82 per cent of WazirX users came from non-metro cities, Menon said, pointing to the geographic spread of crypto adoption. The West and Central regions accounted for 34.6 per cent of India’s crypto market share, according to Walke, reflecting the concentration of digital payment users and high-net-worth individuals in these regions.
The broader market has shown resilience despite an 11 per cent decline in global retail crypto trading volumes in the first quarter of 2026, Walke said. He also pointed to growing activity linked to remittances and business-to-business payments, alongside speculative trading.
For Indian exchanges, the challenge is to convert this participation into deeper domestic liquidity. Competitive execution, reliable access, investor education and greater policy clarity will be important in retaining more trading activity on regulated domestic platforms, Menon said.