A Study on Cryptocurrency Adoption and Its Impact on Traditional Financial Markets: Evidence from WazirX India
DOI:
https://doi.org/10.64751/Keywords:
Cryptocurrency, WazirX, Bitcoin, Ethereum, traditional financial markets, BSE Sensex, crypto adoption, blockchain, digital assets, India cryptocurrency regulation.Abstract
Cryptocurrency has emerged as one of the most disruptive financial innovations of the twenty-first century, challenging the foundational assumptions of traditional banking, investment, and monetary systems. India's cryptocurrency market, catalysed by platforms such as WazirX, witnessed explosive growth between 2019 and 2022, attracting over 15 million registered users before facing regulatory headwinds from the Reserve Bank of India and the Government of India's evolving policy framework. This study examines cryptocurrency adoption patterns among WazirX users in India and analyses the impact of cryptocurrency price movements and trading volumes on traditional financial market indicators including the BSE Sensex, NSE Nifty 50, Indian rupee exchange rate, and gold prices. Primary data was collected through a structured questionnaire administered to 100 WazirX account holders in Hyderabad. Secondary data was sourced from WazirX trading disclosures, SEBI publications, RBI reports, and academic literature on cryptocurrency market dynamics. Findings reveal that Bitcoin and Ethereum account for 68% of Indian crypto portfolios, that crypto adoption is concentrated among 22-34 year old male investors with above-average financial literacy, and that significant negative correlation exists between crypto market drawdowns and equity market sentiment. Recommendations include regulatory clarity, investor education on crypto risk, and portfolio diversification frameworks that appropriately integrate digital assets.
