Credit Suisse Falling
Credit Suisse, an international financial services company based in Switzerland, has been struggling recently as the cryptocurrency market continues to be highly volatile. The bank announced on February 8th that it would cut approximately 5% of its global workforce due to a “shift in strategy” related to digital banking and cryptocurrencies. It is being reported that Credit Suisse will refocus on corporate and wealth management businesses instead of investing heavily into blockchain technology or cryptocurrency trading activities.
The news sent shockwaves through the industry with many speculating that this could be a sign of what’s to come for other large banks looking at potentially entering the crypto space. This also comes after several well-known investment firms have pulled back from their investments in Bitcoin futures contracts due to lack of demand and low volatility.
While there are still some major players who remain bullish about cryptocurrencies such as JP Morgan Chase & Co., Goldman Sachs Group Inc., and Barclays Plc, it appears likely that those institutions may soon follow suit given recent developments within the industry overall. With both institutional investors and retail customers beginning to shy away from investing in cyrptocurrencies, we can expect more banks like Credit Suisse not wanting exposure too much risk involved with this asset class just yet until more regulatory clarity is provided by governments around the world when dealing with these digital assets..
