FX.co ★ Demand for cryptocurrencies in India continues to increase

Continuing the topic of crypto industry development, here we want to talk about India, where according to the data, there are about 115 million people who have ever dealt with cryptocurrencies. The country's crypto-economy is growing despite the recent market downturn: more than half of the surveyed crypto investors plan to increase their crypto-investments in the next six months.

Recently, an Indian cryptocurrency exchange published a report on India's cryptocurrency ecosystem. It presents the results of a survey conducted from October 2021 to June 2022, which the company called "an in-depth look into the development of the blockchain industry and crypto space" in India. The survey respondents were 2,042 Indian adults between 18 and 60 years old. 1,541 of them were crypto investors and 501 were cryptocurrency consumers interested in investing in cryptocurrency in the next six months.

In India, there are about 115 million cryptocurrency owners and those who have traded it in the last 6 months, which is 15% of India's population aged 18 to 60 years. "The size of crypto investors has seen a mild growth over the past few months despite the enactment of new tax regulations," the report noted.

The United Nations Conference on Trade and Development (UNCTAD) has slightly different numbers. The organization said that 7.3% of India's total population owns digital assets. In July, the UNCTAD estimated India had 1.41 billion people. The report also notes that despite the local government's stance on digital assets and a 30% tax on income generated from digital assets, India's cryptocurrency market is expected to reach $241 million by 2030.The main roadblocks preventing investing in crypto assets are information, regulation, and security. 33% of respondents said government regulation was a concern when considering investing in cryptocurrency. About 26% are concerned that hackers might steal their funds, and 23% fear they might not get their money back in the event of security incidents.

Recently, the Indian government said it was consulting with global organizations such as the International Monetary Fund and the World Bank on cryptocurrency policies. Meanwhile, the Reserve Bank of India has recommended that all cryptocurrencies, including bitcoin and ethereum, should be banned. More recently, the central bank governor warned that the cryptocurrency market could collapse and small investors would lose money.

Yesterday, bitcoin buyers managed to return the price to $20,000. Now they are aiming for further recovery to $20,540. Considering the ongoing bullish market, especially after we saw attractive prices on the back of the recent correction, demand is likely to increase. Bulls are focused on the nearest support of $20,540. If BTC breaks through that level, we might see an upward spurt to $21,140. To build a larger uptrend, the asset needs to break above resistances of $21,840 and $22,520. If the pressure on bitcoin comes back, bulls will do their best to defend the support of $20,007. If that level is pierced, BTC may be pushed back to $19,520 and $19,100.

Ethereum also showed a strong bullish run after another bearish attempt to take control of the market. The nearest target for buyers in the current conditions is the resistance of $1,605, getting which the pair failed to break through for two days in a row. If the asset manages to pierce that level, it may start an uptrend with the targets at $1,667 and $1,743. If the pressure on the trading instrument comes back, buyers will have to hold the price above $1,530 again. While ETH is trading above that level, the market is under their control. However, if the price breaks through that area, it may push the ethereum back to $1,476 and $1,418.