GM and welcome to The Crypto Nutshell! 🫶 🥜 

The crypto newsletter that's more explosive than waking up with a sudden flair for chemistry and a knack for entrepreneurship 🧪💼

Today, we’ll discuss:

• Recapping the last 24 hours in the world of crypto 🌏

• Michael Saylor’s top 5 Bitcoin catalysts 🤑

• What is the Bitcoin SOPR?💰

• And more…

MARKET WATCH ⚖️

BTC Dominance is currently at 50.45% and the current crypto market cap is $1.17T  ▼0.18%

Biggest Winners of The Day 🤑

• Shiba Inu (SHIB) ▲3.10%

• Dogecoin (DOGE) ▲0.53%

• Toncoin (TON) ▲0.49%

Biggest Losers of The Day 😭

• Bitcoin Cash (BCH) ▼1.80%

• Polygon (MATIC) ▼0.93%

• Chainlink (LINK) ▼0.76%

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

JUST IN: Visa introduces a new way to pay gas fees on Ethereum via your credit card. 😲

Hold up. Visa is making Blockchain developments?

Yep that’s right. Visa is aiming to simplify blockchain transactions. They’ve been working on a solution that allows for payment of on-chain gas fees with a Visa card.

But what problem does this solve? Visa says this would be a solution to having to constantly manage your ETH balances for gas fees.

Is this actually USEFUL? (We’re not too sure ourselves…) 🤔 

Let us know what you think in the poll at the bottom of this newsletter.

All price data as of 8:25am ET

EXPERT OF THE DAY 💰

This crypto expert gave his top 5 catalysts as to what’s going to spark the next bull-run. 🚀

Today’s expert is the godfather of Bitcoin, Michael Saylor.

If you’re new to crypto, Saylor is essentially the King of Bitcoin. Here’s his impressive resume -

• First started buying Bitcoin in 2020 when Bitcoin was just ~$11,000

• Now owns 152,333 Bitcoin worth over $4.5 Billion through his company MicroStrategy

• Convinced Elon Musk to add Bitcoin to the Tesla and SpaceX balance sheets

In his latest interview, Saylor was posed an interesting question - What will spark the next bull run? 🤔

He had an interesting answer - Saylor outlined 5 major milestones, any one of which could be the spark to erupt the next bull run. These were:

1) The Bitcoin Halving. The next Bitcoin halving is scheduled to take place in exactly 250 days from now, on April 17, 2024. Saylor argues that when $10 billion of new Bitcoin gets slashed to $5 billion, this is going to have an obvious upwards effect on the Bitcoin price, as it always has.

2) FASB initiative to adopt fair value accounting for Bitcoin. This is an interesting one - FASB is the governing body for how companies must represent Bitcoin in their financial reporting. 🤓

Right now, Bitcoin is treated not like securities or cash, but more like a patent or a trademark. Once a company has Bitcoin on its balance sheet, if the price of Bitcoin drops, the company has to write down its value and take a loss on their income statement.

BUT - if the price of Bitcoin goes up - the company is not allowed to write up the value or recognise the gain. It can only recognise the gain once it actually sells the Bitcoin.

This creates a huge deterrent for companies to add Bitcoin to their balance sheets. As Bitcoin is so volatile, a company will have huge write downs on their Bitcoin holdings which impacts how their earnings look. Even if it’s just on paper, it makes their financial performance appear much worse than it really is… which upsets shareholders and potential investors. 😭 (grow up if you ask us)

However efforts are being made to have this changed, where companies can report on the true value on the Bitcoin they hold. Saylor argues that this would be a huge catalyst for Bitcoin.

3) Approval of a spot Bitcoin ETF. Saylor argues that as soon as a spot Bitcoin ETF is approved, the floodgates are open for capital to flow into the space. 👮‍♀️

The date to look out for? 16th of March, 2024 - the deadline for decision on BlackRocks Spot Bitcoin ETF.

4) Approval or endorsement by the SEC of a regulated crypto exchange. Saylor argues that this overlooked factor could be a huge green flag to sophisticated investors. 🧑‍⚖️

Currently the SEC is waging war against crypto exchanges, with two huge lawsuits against the two largest crypto exchanges - Binance & Coinbase.

If they approved or endorsed a regulated exchange, this would be a big nod of approval that would allow institutions to invest without fear of regulatory action.

5) Any constructive guidance or regulation out of Washington DC. Even though Bitcoin and the crypto industry has made huge strides over the past few years, the regulation surrounding crypto is still very messy and opaque. (They’re still arguing over if Ethereum is a commodity or security) 🇺🇸

Saylor argues that clear regulation surrounding Bitcoin would be a huge milestone.

Boom. 5 separate sparks from the man himself, each of which could ignite the next bull-run

The best part? They’re not mutually exclusive and any or ALL of them could happen in the next 12 months. 😳

Exciting times.

Nutty’s takeaway:

Let’s read between the lines of what Saylor is actually saying. 4 out of 5 of Saylor’s catalysts all relate to one thing - institutions feeling comfortable buying Bitcoin.

As soon as they have a risk free way of buying (such as a Spot Bitcoin ETF) as well as some regulatory clarity surrounding exchanges, accounting and legislation in general, the big money is READY to come into the space.

What Saylor is really saying is that the next bull-run won’t be led by retail investors like you and me… it will be fuelled by institutional money and sophisticated investors.

Food for thought. 😉 🥂

ON CHAIN DATA DIVE 📊

Today we’ll be taking a look at the SOPR (Spent Output Profit Ratio). This ratio allows us to track the current level of profit or loss in the market. Using this we can understand investor behaviour. 📈

It’s calculated by dividing the price sold by the price paid. It allows us to see how much profit or loss people are realising on their Bitcoin on a given day. 🧐 

Here’s a quick example to help you understand how this works. A reading of 1.2 means the average spent coin locked in a 20% profit. A reading of 0.85 means the average spent coin realised a 15% loss.

How to interpret the SOPR:

• SOPR > 1: Coins moved that day are on average selling at a profit

• SOPR < 1: Coins moved that day are on average selling at a loss

• SOPR = 1: Coins moved that day are on average breaking even

• SOPR increasing: Profits are being realised, previously dormant coins are being sold

• SOPR decreasing: Losses are being realised and/or profitable coins not being sold

Nutty’s Takeaway: As the SOPR has been flat since the start of August it’s looking like we are in a period of accumulation for Bitcoin holders.

This can be a signal that long term conviction has returned and that holders believe that the current prices are not worth selling at. In other words, HODLers aren’t selling anytime soon. I know I ain’t. 🙌

CRACKING CRYPTO 🥜

TRIVIA TIME ✍️

What type of key allows you to RECEIVE bitcoins?

• A) Public Key

• B) Wallet Key

• C) Alicia Keys

• D) Private Key

Find out the answer at the bottom of this newsletter 😀

MEME CORNER 😂

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

Trivia Answer: A) Public Key 🎉

Bitcoin uses a “two-key system” in which the public key allows you to RECEIVE bitcoins, while the private key is needed to SEND bitcoins.

NUTCASE REVIEW OF THE DAY 🔍

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.