Bitcoin has reached a historic milestone, breaking above $112,000 and reigniting bullish momentum across the crypto market. With this, BTC’s year-to-date gain stands at 19%. It entered price discovery of $109,000 after breaking the January 20 high on Wednesday this week, hitting $112,000 for a brief period on Thursday. BTC has gained 7% over the past week and 18.7% in the past month after posting a recovery from a 32% decline when it plunged to below $75,000 levels in April 2025.
The BTC rally has extended to altcoins like ETH, Solana, and Hyperliquid as well, which gained up to 17% in a single day this week. Institutional inflows have also played a key role, with Spot ETFs witnessing over $600 million in net inflows in just one day, helping BTC sustain its momentum. The second biggest crypto, Ethereum, is holding strong above $2,500 and edging closer to $2,700, while altcoins are showing signs of preparing for the next leg higher.
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Crypto remains heavily taxed in India at 30%, with an additional 1% TDS on transactions worth over Rs 10,000. There’s no comprehensive regulatory framework, leading to institutional investors staying away from India’s crypto market. In the wake of the global BTC bull run, Fortune India spoke to Indian crypto stakeholders, asking what’s stopping Indian institutions from joining the global bitcoin momentum, and what risks does India face by delaying crypto regulation while others move ahead? Here’s a lowdown:
BTC rally leads to spike in user activity
In the past month, BTC has seen an 18.49% surge, which certainly has impacted the activity across Indian crypto platforms. The broader crypto market is riding Bitcoin’s momentum, but altcoins like Solana and Cardano continue to see growth, with the Crypto Fear & Greed Index climbing to 78 (Extreme Greed). “The recent rally has reignited interest in Bitcoin and digital assets more broadly, prompting both new users and returning investors to explore crypto markets again,” says Avinash Shekhar, Co-Founder & CEO of crypto derivatives trading platform Pi42.
Bengaluru-based Mudrex also saw trading volumes go up by 2.5X in the last two weeks. “Since Bitcoin gained back the bullish momentum, buy/sell activity in Bitcoin has increased by 300%. We expect this momentum to continue with altcoins also becoming a part of the ongoing bull run,” says Edul Patel, Co-founder and CEO of crypto investment platform Mudrex.
With BTC staying firm at the $110,000 level, the rally is ongoing. “The surge in trading volumes in the past 10 days alone is a clear sign of revived retail interest. Behaviorally, users are shifting from passive holding to active portfolio management. Many are rebalancing into BTC. Even at higher price points, users are buying into small corrections and dips to take advantage of the BTC rally,” says Vikram Subburaj, CEO and co-founder of Giottus, a cryptocurrency exchange platform.
The growing momentum highlights the larger opportunity that exists, which could expand significantly with a more supportive environment for institutional participation. “Retail investors are becoming more comfortable in exploring crypto, showing curiosity and confidence.”
Institutional crypto catch-up
India has made commendable progress, from a structured tax framework to advocating for global crypto regulations at the G20. But for institutional investors to participate, more clarity is needed, says Edul Patel, Co-founder, Mudrex. “Regulatory uncertainty and legal ambiguity are major concerns,” he says, adding that clear policies could legitimise the market and bring institutions in.
Avinash Shekhar, Co-Founder & CEO, Pi42, echoes this: “India does not currently have a comprehensive regulatory framework. Taxing at 30% isn’t enough to instill regulatory confidence.”
India lacks regulated custody providers or ETFs. “Until ambiguities are removed, institutions will avoid placing big bets on Bitcoin,” Shekhar adds. Indian institutions have mostly stayed on the sidelines of the global Bitcoin surge and remain cautious, says CoinSwitch VP Balaji Srihari, citing the lack of legal clarity and limited recourse mechanisms. “While global markets offer regulated ETFs, institutional-grade custody, and clear compliance paths, India’s crypto ecosystem is still catching up.”
India risks being a policy taker, not a shaper
India’s delay in enacting comprehensive crypto regulation carries four key risks: capital flight, innovation drain, investor vulnerability, and global competitiveness erosion. “This is also leading to capital outflow and tax leakage. Indian investors are using foreign platforms…startups and Web3 talent are moving abroad to launch tokens or access funding, risking India becoming a net exporter of innovation,” says Subburaj of Giottus.
Without a proper licensing regime, users are often exposed to scams and platform failures. Countries like the US are advancing crypto rules and shaping global standards, but India risks being a policy taker, rather than being a shaper, says Subburaj.
Shekhar of Pi42 agrees, saying India’s indecision may result in missed economic and technological opportunities, while the U.S., Singapore, and EU countries are steadily integrating digital assets into their financial systems. Companies also say the longer India delays a clear, progressive approach to crypto, the wider the global gap becomes. “We’ve already missed out on the last wave of crypto-led innovation and with it, opportunities for growth, investment, and wealth creation at scale. Let’s not miss the next,” says Srihari of CoinSwitch.
India must follow suit by taking incremental steps, starting with clear guidelines on specific aspects of crypto to compete with other nations, says Patel of Mudrex. “Today, even the leading economies like the US lack a complete regulatory framework, but there is steady progress, like the GENIUS Act…India must follow suit by taking incremental steps, starting with clear guidelines on specific aspects of crypto.”
