Bitcoin’s recent rally has triggered a significant increase in trading activity across Indian cryptocurrency exchanges, with major platforms reporting a sharp rise in spot and futures volumes.

Bitcoin, which approached $80,000 last week, was trading around $77,000 on August 24 morning. Exchanges including CoinDCX, CoinSwitch, WazirX, Mudrex and Giottus reported higher participation as traders responded to the renewed momentum in the cryptocurrency market.

CoinDCX saw its overall trading volume more than double between August 19 and August 21. Its spot trading volume increased from around $5 million to $6 million earlier in the period to approximately $13 million during the final two days. The exchange recorded average trading volume of about 11.7 million USDT on August 23.

Bitcoin trading volume on CoinDCX also increased significantly, rising from roughly $300,000 to $700,000 during the earlier period to around $2 million on August 21, according to CoinDCX Co-founder and CEO Sumit Gupta.

Mudrex reported a 20 percent week on week increase in spot trading volumes, indicating stronger engagement from traders seeking exposure to the cryptocurrency rally.

Futures trading saw an even sharper increase on WazirX. The exchange said daily futures volumes rose almost seven times between August 16 and August 22, with futures activity increasing more rapidly than spot trading. The number of active futures traders also increased during the period.

Giottus reported a 22 percent increase in spot volumes and a 31 percent rise in futures volumes. After adjusting for the increase in participants, average volume per trader increased by approximately 10 percent in spot trading and 11 percent in futures trading.

US policy and liquidity expectations drive rally

The rally began on August 19 after US Treasury Secretary Scott Bessent said the Treasury would increase the maximum size of certain long dated bond buybacks from $2 billion to at least $4 billion per operation. The announcement triggered a sharp market reaction and contributed to the liquidation of billions of dollars in short positions.

Sentiment was further supported by US President Donald Trump’s meeting with executives from cryptocurrency companies, including Coinbase and Payward. Trump called on Congress to pass the crypto CLARITY Act, while rules related to the GENIUS Act are expected to be finalised before November.

Market participants said expectations of greater liquidity were an important factor behind Bitcoin’s move higher. Giottus CEO Vikram Subburaj said markets interpreted the Treasury announcement as a positive liquidity signal, contributing to lower long term yields and a weaker dollar, which created a more favourable environment for Bitcoin.

Institutional flows also strengthened during the rally. US spot Bitcoin exchange traded funds recorded around $1.92 billion in net inflows last week. Once Bitcoin broke out of its previous trading range, ETF inflows combined with the liquidation of more than $4 billion in short positions accelerated the upward move.

Altcoins also attract stronger participation

The increase in activity was not limited to Bitcoin. Indian exchanges reported stronger interest in Ethereum, XRP, Solana, Dogecoin, Shiba Inu and HYPE.

CoinSwitch said Ethereum, XRP, Dogecoin, Shiba Inu and Solana recorded strong interest, suggesting that participation was broadening beyond Bitcoin.

CoinDCX reported a particularly sharp increase in HYPE trading volumes, which rose from below $25,000 to nearly $190,000.

Giottus said XRP remained particularly sensitive to changes in US regulatory expectations, while Solana attracted traders looking for a higher beta exposure to the broader recovery in risk appetite.

Mudrex also reported increased interest in tokenised commodities such as gold and silver as traders sought exposure to the broader market rally.

Sustainability of rally remains uncertain

Despite the sharp increase in trading activity, industry participants remain cautious about the durability of Bitcoin’s rally.

Mudrex Head of Business Prateek Gupta said it was too early to determine whether the move represented a sustainable trend. He noted that Bitcoin’s strong close above $78,000 was positive, but the underlying quality of the rally would be important. A rally driven primarily by leverage or a single market headline could leave Bitcoin vulnerable to a pullback toward the $65,000 level.

CoinSwitch VP Business India Balaji Srihari said traders would be watching whether Bitcoin can maintain support above $75,000 and decisively break the $80,000 resistance level.

The sharp rise in Indian exchange volumes therefore reflects renewed risk appetite and broader participation, but traders are likely to remain focused on Bitcoin’s ability to sustain key technical levels and whether institutional flows continue to support the rally.