Tether has announced through a blog post the discontinuation of EURT, its euro-backed stablecoin. This, due to the new MiCA regulations of the European Union. In this sense, the company explained that EURT holders will have one year to redeem their tokens, while adjusting its approach to a more stable and favorable regulatory framework in Europe.
Now, this decision reflects an evident change of course by Tether in light of the implementation of MiCA, which is reshaping the Cryptocurrency market throughout the region.
Although Tether is losing ground in the EU, it has invested in MiCA-compatible stablecoins, such as Quantoz, and continues to promote its new solution, Hadron, aimed at supporting the creation of stablecoins by other issuers.
It is expected that, with the entry of new competitors, the dynamics of the European stablecoin market will continue to transform.
Trump could redefine cryptocurrency regulation in the United States
Donald Trump’s incoming administration is considering giving the Commodity Futures Trading Commission (CFTC) an expanded role in regulating digital assets, according to Fox Business. This change could transfer some power from the Securities and Exchange Commission (SEC) to the CFTC. Allowing you to monitor spot markets and exchanges related to cryptocurrencies such as Bitcoin and Ethereum, considered commodities.
The proposal comes at a time of key transition for the industry. Outgoing SEC Chairman Gary Gensler, who called BTC and ETH commodities, will resign on January 20, 2025. Coinciding with Trump’s inauguration.
Gensler maintained a strict stance towards cryptocurrencies. Which contrasts with Trump’s promises to boost the sector, including the creation of a “Federal Bitcoin Reserve” and a specific position in the White House for cryptoasset issues.
The move could transform the regulatory landscape at a crucial time for digital asset adoption in the United States.
MicroStrategy suffers the biggest drop in its history in four days
The market capitalization of MicroStrategy, known for its strong bet on Bitcoin, experienced a historic loss by plummeting more than 35% in just four days. Erasing more than $30 billion since its Nov. 21 peak, according to Kobeissi Letter.
WOW.
MicroStrategy stock, $MSTRjust fell a MASSIVE -35% from its peak seen on November 21st.
That’s ~$30 BILLION of market cap erased in 4 trading days as #Bitcoin fell ~9% from its high.
This is one $MSTR‘s largest 4-day drops in history.
What just happened?
(to thread)
— The Kobeissi Letter (@KobeissiLetter) November 26, 2024
The company’s share price fell 7.5% in the last 24 hours, trading at $354.10 as of November 27. This decline aligns with the recent correction in the price of Bitcoin, which fell after reaching an all-time high near $99,700 on November 22.
Despite the drop, both MicroStrategy and Bitcoin maintain solid annual returns, with increases of 599% and 146%, respectively. This performance reinforces the perception of the company as a Bitcoin-leveraged vehicle, designed to outperform the leading cryptocurrency.
The volatility highlights the inherent risks of this strategy, as investors debate whether MicroStrategy can continue to lead as a representative of the cryptocurrency market.
Jim Cramer: Unintended Indicator for Cryptocurrency Market?
CNBC’s “Mad Money” host Jim Cramer created a stir in the cryptocurrency community after issuing a bullish message about Bitcoin. What some consider a warning sign in the market. Shortly after his statements, the price of Bitcoin fell 5%, losing nearly $5,000 and pushing long liquidations to an 11-day high, surpassing $344 million.
Cramer, known for his forceful style and controversial opinions, defended his stance on cryptocurrencies during his show. Citing concerns about government spending and the deficit.
However, his history of failed predictions has made him a meme phenomenon within the crypto community, where some traders interpret his comments as contrarian indicators.
“I would rather own Bitcoin than invest in companies like MicroStrategy,” Cramer said, adding that while there is no evidence that cryptocurrencies are an effective hedge against economic instability, he finds his narrative plausible.
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