According to the heads of Australia’s largest crypto exchanges, the market has already entered the initial phase of a major rally as the number of investors gradually increases, a trend that is anticipated to accelerate early next year.
Independent Reserve CEO Adrian Przelozny told Cointelegraph that he anticipates a surge in market activity in early 2024 and is currently hiring to construct infrastructure in preparation.
“We’re just doing everything we can to get ready for a bull market because we know that when the bull market comes, it happens very fast,” he said. “You need to make sure you have the processes, people, and infrastructure in place so when your business triples overnight, you can handle it.”
“I think the next two years are going to be good. Strap yourselves in.”
BTC Markets chief Caroline Bowler stated that market conditions had become more favorable over the year, beginning with a general recovery in January.
Bowler further stated that although the trajectory of market gains had not been precisely linear, there were grounds for optimism due to the industry-wide expansion in both tech applications and asset prices.
“The current deployment of ‘dry powder,’ an influx of new users, and an uptick in trading volumes further support our assessment that we are in the early stages of a bull market.”
Swyftx’s head of product strategy, Tommy Honan, stated that his exchange has begun to witness an increase in buying activity and is moving swiftly to shore up direct debit functionality — a recent pain point for Australia’s crypto scene as some exchanges have been restricted or outright banned deposits by Australia’s ‘Big Four’ banks.
However, instead of attributing the increase in activity to FOMO (fear of missing out), Honan emphasized that investors who had remained on the sidelines during the bear market were now more interested in the market’s fundamentals.
“All our indicators are flashing green at the moment. We’re seeing a significant number of customers come back to the market after periods of inactivity during the bear market.The market is waking up, but the truth is no one knows where we’re at in the cycle.”
Jonathan Miller, managing director of Kraken Australia, advised exercising prudence and stated that determining the current market phase can be challenging.
“There’s a common misconception that the crypto markets are either in a bull market or bear market. In reality, there’s a large gray area between these two,” he said.
Miller acknowledged that there are numerous reasons for optimism compared to last year.
Notably, he is anticipating the Bitcoin halving in the coming year and the Dencun upgrade of Ethereum, which he believes is beginning to attract the interest of institutional and retail investors.
“The expanding institutional appetite for crypto assets is often underlooked. Yes, the markets are currently focused on ETF filings for Bitcoin and Ether, but in the last year, we’ve seen a revival of interest from many institutional clients looking for exposure to this emerging asset class,” he continued.
Ben Rose, general manager of Binance Australia, refrained from speculating on the emergence of a bull market but did mention an increase in recent months in both new registrations and trading activity on the Australian branch of the platform.
Rose stated that Binance Australia was committed to educating users about a possible rally and preventing FOMO purchasing.
“We asked a lot of exiting customers about the reasons they got into crypto, and a quarter of them said that seeing others succeed with crypto was the main reason. That’s the single biggest driver. So FOMO in crypto is a real thing,” he explained.
Rose stated that preventing individuals from being trampled during a market frenzy was crucial to retaining users throughout the next potential market surge.
“Price is one thing that will unlock interest, but you want people to be able to onboard in a sustainable and responsible way so it’s not just a one-off,” he said. “Sure price might be the reason they first look at crypto, but ultimately they’re in there because they understand the benefits of it and it becomes part of how they manage finances.”
