Crypto firm Bitcoin Suisse is confident another big bull rally is coming for bitcoin, and it wants to be prepared. It’s now reinventing itself as the ultimate “crypto asset manager” and trying to market its services to high-net-worth individuals that have a lot of digital currency to their names.
Bitcoin Suisse Sees a Huge Rally Coming
Banking veteran and chief executive of Bitcoin Suisse Dirk Klee said in a recent interview that the recent washout of bad actors – including names like FTX and Block Fi – has cleaned the crypto house and paved the way for a bright and illustrious future. He said:
Institutional players [need] to be safe places. So, on the back of the eruptions that we’ve seen in 2022, institutions have sharpened their focus on how to do proper risk management; who are the trusted partners; how deep do I have to go into technical details to understand the dynamics. With FTX, all the problems were traditional finance problems: misappropriation of client funds; no proper risk management; trading against client interests and so forth. Basic institutional standards were not being met. So, I think now, institutions want to go deeper. They want to do proper due diligence. They want to fully understand how [crypto companies] work; what we deliver; how we’re set up; are we safe, and that’s a good thing. There was hype in 2021. The market was getting ahead of itself, and the weaknesses of some players were exposed. I believe the washout is a healthy development.
He also believes that bitcoin has been through the mill and is likely to experience steady growth over the coming years and be less vulnerable to volatility. He commented:
Regulators have really stepped into this space. They’re providing safe rail guards for wider adoption and access to crypto, and the other thing is that some months ago, [western economies] left a 30-year cycle of lowering interest rates and cheap money pouring into the next higher-risk asset class… That money is no longer available. Investing is getting tougher for companies in this industry, and we [need] to prove that we have a sound business model. The actors are becoming sounder on the back of better risk management, hopefully, and the use-cases of the protocols are becoming clearer. The protocols also [need] to prove that they are delivering value. The hype and the money that flew into the hype has stopped. Now it gets real.
Why is BTC not Real Money Yet?
Bitcoin Suisse also wants to see a day where bitcoin is looked at as real, valid money and it’s used to pay for everyday items. Klee stated:
The notion of bitcoin as a means of payment for smaller transactions has not come true. It has not evolved for everyday use like buying a coffee at Starbucks.