Kalam Crypto #128: Bitcoin & Gold leading the way in 2024

“Master your circumstances rather than be ruled by them.”

Ahlan wa sahlan, and welcome to the 128th edition of CoinMENA’s weekly newsletter, Kalam Crypto! This week, for the first time ever, Gold and Bitcoin are the top two performing asset classes globally. The ETH/BTC ratio continues to decline, Bhutan disclosed holdings of over 13,000 BTC, and El Salvador revealed that next year’s budget will be debt-free for the first time in decades. All this and more in this week's edition of Kalam Crypto!

Lightning Round ⚡️

Bitcoin & Gold Leading: Bitcoin (+43%) and Gold (+25%) are the top-performing major asset classes of 2024, marking the first time they've held the #1 and #2 spots together in any calendar year. Often referred to as "digital gold" due to its scarcity, Bitcoin’s rise reflects the market’s growing awareness of the need to hedge against currency devaluation. Investors are increasingly allocating capital to these two scarce assets as a way to protect wealth in uncertain times.

Bhutan HODLs 13,029 BTC: The Kingdom of Bhutan, through its investment arm Druk Holdings, holds over $750 million in Bitcoin from its mining operations, making it the 4th largest government holder of BTC tracked by Arkham Intelligence. Unlike most governments, Bhutan's Bitcoin comes from mining rather than asset seizures.

Debt-Free El Salvador: El Salvador, the first country to recognize Bitcoin as legal tender in 2021, has been buying 1 BTC daily, accumulating over 6,000 BTC. During its 203rd independence celebration, President Nayib Bukele announced that the 2025 budget will be debt-free, marking the country's fiscal independence. For the first time in decades, the general budget will be self-financed without external borrowing. This is a significant milestone for El Salvador, reflecting a reduction in the fiscal deficit from $1.2 billion in 2019 to $338 million in 2024.

Microstrategy adds $1 billion in Bitcoin: MicroStrategy has added 18,300 BTC to its holdings for approximately $1.1 billion, bringing its total to 244,800 BTC, now worth over $14 billion. Alongside this purchase, the company plans to issue $700 million in convertible senior notes, using $500 million to redeem existing secured notes due in 2028, which have a 6.125% yield. The remaining funds will be allocated to buying more Bitcoin and general corporate purposes.

Keep an eye on 👀

ETH/BTC Ratio: The Ether-Bitcoin (ETH/BTC) ratio has dropped to its lowest level since April 2021, falling below 0.04, as investors show a stronger preference for bitcoin over ether. This shift is partly due to the success of bitcoin ETFs, which have attracted significant inflows, while ether ETFs have experienced outflows. 

CoinMENA News 🗞️

Double Referral Rewards: This week, every successful invite earns you $10 instead of just $5. Generate your referral link and share it with your friends, on your social media channels, and start earning today!

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Quiz Corner ✅ 

Last week’s question: What significant regulatory move has recently shaped the crypto landscape in the UAE? Answer: Collaboration between VARA and SCA on licensing rules.

This week’s question, which of the countries listed below owns the most bitcoin?

1. United States

2. Germany

3. El Salvador

4. Bhutan

See the answer in next week’s newsletter. Or check out our new learning platform https://university.coinmena.com/