According to Australia’s largest crypto exchanges, the market has already entered the initial phase of a significant rally, with an increasing number of people buying crypto. This trend is expected to accelerate in early 2024. Adrian Przelozny, CEO of Independent Reserve, anticipates an uptick in market activity and is actively hiring to build infrastructure in preparation for the forthcoming bull market. Przelozny emphasizes the importance of having robust processes, skilled personnel, and appropriate infrastructure in place to accommodate the rapid growth that can occur during a bull market.
Caroline Bowler, chief of BTC Markets, observes that market conditions have become more bullish over the past year, marked by a general recovery that began in January. She cites the industry-wide growth in asset prices and technological applications as reasons for confidence. Bowler notes that the deployment of “dry powder,” an influx of new users, and increased trading volumes further support the assessment that the market is in its early stages of a bull market.
Tommy Honan, product strategy head at Swyftx, reports an uptick in buying activity on their exchange and reveals efforts to address recent challenges related to direct debit functionality. He attributes the increased market activity to attractive market fundamentals that have enticed investors who were cautious during the bear market. Honan emphasizes that the market is in a positive state, though uncertainties about its exact phase persist.
While maintaining caution, Jonathon Miller, managing director of Kraken Australia, asserts that identifying the market phase can be challenging. He dispels the misconception that the crypto markets are strictly defined as either bull or bear, emphasizing the existence of a broad gray area between the two. Miller acknowledges multiple reasons for optimism compared to the previous year, including the Bitcoin halving and Ethereum’s Dencun upgrade, which have garnered attention from institutional and retail investors. Additionally, he highlights the growing institutional appetite for crypto assets as an often overlooked factor, noting the revived interest from institutional clients seeking exposure to this emerging asset class.
The general manager of Binance Australia, Ben Rose, declined to determine whether a bull market had emerged, but he acknowledged the recent increase in new registrations and trading activity on Binance Australia. Rose emphasized the focus of Binance Australia on educating users before a potential market rally and ensuring that users avoid impulsive buying driven by fear of missing out (FOMO).
To gain insight into customers’ motivations for entering the crypto market, Binance Australia conducted surveys among existing customers. The results revealed that a quarter of respondents identified the success of others in the crypto market as their primary reason for entering. This phenomenon of FOMO in crypto is a significant driving force, according to Rose.
To retain users amid a potential market surge, Rose stressed the importance of preventing individuals from being overwhelmed by market frenzy. While price may initially attract interest, Binance Australia aims to facilitate sustainable and responsible onboarding, ensuring that individuals understand the long-term benefits of cryptocurrency and incorporate it into their financial management practices.