Indian investors are now sitting on an estimated $120 billion worth of Bitcoin, a figure that places the nation second globally in BTC ownership, sparking a renewed debate on the potential windfall for the national treasury. The monumental holdings, largely attributed to a broad retail base with smaller average investments, highlight the continued, robust adoption of digital assets despite a stringent tax regime.
According to a global ownership estimate, India’s 1 million BTC constitutes 5.1% of the total circulating supply (19.5 million BTC), valuing the holdings at approximately $120 billion with Bitcoin trading near the $120,000 mark. This impressive figure positions India directly behind the United States, which commands a staggering 40% of the total supply with 7.8 million BTC, valued at $936 billion. Europe follows, holding 0.9 million BTC ($108 billion), while the Chinese government’s seized coins amount to 0.194 million BTC ($23.3 billion).
The scale of these holdings brings India’s crypto taxation policy back into sharp focus. Since the Union Budget 2022–23, income from Virtual Digital Assets (VDAs) has been subject to a flat 30% capital gains tax, a 1% TDS on transactions, and a ban on offsetting crypto losses against other gains. While these regulations have been a point of contention for market participants, the sheer volume of Bitcoin held by Indian investors suggests the appetite for crypto assets remains undeterred.
With Bitcoin’s market capitalization soaring to $2.27 trillion and its price holding steady above $114,000, the conversation is shifting from adoption hurdles to the future implications of this vast, unrealized wealth. Analysts and financial experts are now closely monitoring whether a potential rally or a significant sell-off could trigger a cascade of capital gains tax revenue, further impacting India’s fiscal landscape. The interplay between investor behavior and the tax framework will be a key dynamic to watch in the coming months.