Kalam Crypto #119: Circle obtains EU license & BTC drawdowns in a bull market
This week, Circle became the first stablecoin issuer to obtain a license under the EU’s MICA crypto rules, Japan’s Microstrategy buys more bitcoin, and our blog of the week examples of why 20% bitcoin drawdowns are common during a bull run.
“The most important thing about Bitcoin is the fact that it has given us an opportunity to reinvent the concept of money.” Adam Draper
Ahlan wa sahlan, and welcome to the 119th edition of CoinMENA's weekly newsletter, Kalam Crypto. This week, Circle became the first stablecoin issuer to obtain a license under the EU’s MICA crypto rules, Japan’s Microstrategy buys more bitcoin, and our blog of the week examples of why 20% bitcoin drawdowns are common during a bull run. All that and more in this week’s Kalam Crypto.
Global News 🌍
Circle obtains the first stablecoin license under the EU's new MiCA crypto rules: Circle, the issuer of the second largest stablecoin USDC, has secured an Electronic Money Institution (EMI) license in Europe, making it compliant with the EU's upcoming Markets in Crypto Assets (MiCA) regulation. This license allows Circle to expand its services across Europe, ensuring that its operations align with MiCA’s regulatory standards aimed at stabilizing and standardizing the crypto market in the region. MiCA, which covers cryptocurrencies and stablecoins but excludes central bank digital currencies and security tokens, seeks to harmonize the fragmented regulatory landscape across the EU's 27 member states.
Keep an eye on 👀
MetaPlanet, a Tokyo-listed investment firm, is adopting the Bitcoin standard, following Michael Saylor’s MicroStrategy. This means the company is converting all excess cash and cash equivalents into Bitcoin. Afterward, they borrow fiat (Yen) at low rates to buy more Bitcoin, effectively going short on fiat and long on Bitcoin. Since adopting this strategy in late May 2024, MetaPlanet shares have risen over 100%, while MicroStrategy's stock is up nearly 900% since August 2020. Adding Bitcoin to a corporate balance sheet is proving beneficial. Who will be the first MENA company to adopt this strategy?
Blog of The Week ✍️
Bitcoin drawdowns during bull markets: A lot are wondering why the bitcoin price has retreated from a time high of $73k to the low $60k range now. In this blog post, we take a look back at the last two bitcoin bull markets to see how common a 20%+ correction has been on the path from a break of previous all-time highs to the setting of new all-time highs. https://www.coinmena.com/en/blog/1zB8DbNZstIdInvCKpscP5
Class of the Week 🎓
Markets explained: Bull, Bear & Crab
Tweet Of The Week 🐥
The Japanese MicroStrategy announces their bitcoin purchases the same way Michael Saylor does.
Quiz Corner ✅
Last week’s question: What recent milestone did the U.S. Securities and Exchange Commission (SEC) achieve regarding Ethereum? The correct answer is B) Dropped the lawsuit against the Ethereum Foundation
This week’s question is, Which of the following describes a “crab market”?
A) A market with rising prices
B) A market with falling prices
C) A market with no clear trend
D) A market where everyone blames their bad luck on the crabs
See the answer in next week’s newsletter. Or check out our new learning platform https://university.coinmena.com/
