GM to all 14,326 of you. Crypto Nutshell #112 hoppin’ through. 🐸🥜 

We’re the crypto newsletter less stressful than managing a paper supply company with a diverse group of personalities... 📄🤪

Today, we’ll be going over:

• 😮 SEC decides not to appeal

• 😳 4 Warnings for Bitcoin

• 📉 Exchange balances are dwindling

• 🤑 And more…

MARKET WATCH ⚖️

Only the top 20 coins measured by market cap feature in this section

SEC DECIDES NOT TO APPEAL 😮 

BREAKING: SEC Won’t Appeal Loss in Grayscale Case, Boosting Odds GBTC Will Become a Bitcoin ETF

This hasn’t come as a surprise. 4 days ago we laid out the SEC’s options and mentioned that the most likely outcome would be no appeal.

If you have no idea what we’re talking about, here’s a super quick summary:

In August a Judge made a ruling in Grayscale's favour over the SEC. Grayscale wanted to convert their Bitcoin Trust into an ETF and the SEC said no. The judge believed the SEC's decision was "arbitrary and capricious". Based on the fact they recently approved Bitcoin futures ETFs.

The SEC had the option to appeal this decision and take it to the Supreme Court, but they decided not to.

Off the back of this news the price of Bitcoin immediately shot up to $27,000.

And… then immediately dipped back down to $26,850 at the time of writing. 🤣

The story doesn’t finish here though. The SEC still has the authority to deny Grayscales application for other reasons…

If this is the case, Grayscale would likely challenge the SEC's decision again in court. Pretty much bringing us back to square one.

ETF expert’s James Seyffart and Eric Balchunas put out a note summarising their thoughts on the current ETF approvals

TLDR: 90% chance of approval by January 2024 🤑

TOGETHER WITH REKT RADAR 🤑

Crypto is like the wild west of investing. 🤠 

It’s not uncommon to see 10x, 50x or even 100x plus returns in a bull market.

As much as we love Bitcoin & Ethereum, unfortunately they’re most likely not going to pull a 100x next bull run. They’ve gotten too big.

The next 100x gem is most likely going to come from a coin you’ve never heard of before.

The problem? There’s literally thousands upon thousands of coins.

That’s why we read Rekt Radar.

Think of it like the Crypto Nutshell, but for DeFi: They share the best kept secrets on the latest DeFi & smaller crypto gems.

The best part?

Just like us, they’re completely free.

Smash that subscribe button and it’ll automatically add you to their list.

Future you will thank you. ❤️

4 WARNINGS FOR BITCOIN 😳

Edward Snowden is a polarising figure.

For those unaware, Snowden is a former contractor for the U.S National Security Agency.

Whilst employed at the NSA, Snowden grew concerned with their surveillance programs. Feeling that the public had a right to transparency, Snowden leaked classified documents. They detailed the scale & scope of the programs.

Snowden then fled from the U.S government and has been on the run for over a decade.

He is considered a hero by some and a traitor by others.

This week, Snowden did a rare interview at Bitcoin Amsterdam 2023.

Snowden has been a cryptocurrency supporter for years. This time, he provided investors with some warnings:

• Bitcoin investors shouldn’t focus on price, but the underlying use cases

• Bitcoin has a real problem with lack of anonymity. Governments are easily able to track transactions and this needs to be addressed

• Coming ETF’s should be viewed with scepticism. On one hand, ETF's will push prices higher. On the other, institutions may hold too much influence over Bitcoin and ‘tame’ it

• Developers and users need to focus on solutions for anonymity. This will help Bitcoin fulfil Satoshi Nakamoto’s original vision

Some real nuggets of truth from Snowden and goals to focus on in the future.

With the topic of Snowden being so controversial, we want to hear from you.

Do you consider Snowden a hero or traitor?

EXCHANGE BALANCE DWINDLING 📉 

Today we’ll be taking a look the illiquid supply vs the exchange supply.

Not to be confused with the long-term supply (held for longer than 155 days). Glassnode looks at all wallets and determines how many coins they hold and how many coins they spend.

A HODLer withdraws their coins, letting them sit in their wallet for a very long time. A history of low wallet activity would classify this as illiquid supply. With enough time passing, these coins eventually age into long-term supply.

For example, wallets owned by Coinbase are transacting all the time. Coins are coming in and coins are going out. This classifies as liquid supply.

Taking a look at the chart above, you’ll notice a massive divergence.

Exchange balances are at a 5 year low of 2.3M Bitcoin. 📉

And the amount of Bitcoin held by long-term holders is at an all-time high of 15.3M Bitcoin. 📈

Coins continue to be withdrawn from exchanges, moving into HODLer owned wallets. These coins are then generally ageing into long-term holder status.

Currently 76.10% of the circulating supply hasn’t moved in over 5 months. This is increasing at a rate of 50k Bitcoin per month. Checkout our article from 2 days ago breaking this down.

Bottom Line: HODLer’s are dominating the market in a way we’ve never seen before. This is a perfect set-up heading into the halving…

Exciting times ahead. 😎

CRACKING CRYPTO 🥜

WHAT WE’RE READING ✍️

Want to get even smarter? Check these out.

p.s. all completely FREE

CAN YOU CRACK THIS NUT? ✍️

May 22nd 2010 marks the first recorded day that Bitcoin was used to purchase a physical good. What was this physical good?

• A) Pizza

• B) Hotdogs

• C) Burgers

• D) Fried chicken

Find out the answer at the bottom of “Meme Corner” below 😀

MEME CORNER 😂

Because what would the crypto world be without its share of memes?

Trivia Answer: A) Pizza 🥳 

Laszlo Hanyecz made the first recorded purchase of a physical good using Bitcoin. He spent 10,000 Bitcoin to purchase two Papa John’s pizzas on May 22, 2010.

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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.