Today’s edition is brought to you by Crypto Nutshell Pro.
If you’re interested in altcoin coverage, buy recommendations & want to know what’s in the Crypto Nutshell Portfolio, click here to join now the waitlist now!
GM to all of you nutcases. It’s Crypto Nutshell #712 slitherin’ by… 🐍🥜
We're the crypto newsletter that's more mysterious than a town where no one can escape and every secret is deadly... 🏘️🕵️
What we’ve cooked up for you today…
🏦 Here we go?
🏠 $7.3 trillion looking for a home
⚡ Supply shock?
💰 And more…
Prices as at 4:20am ET
HERE WE GO? 🏦
BREAKING: Fed cuts rates by 25bps as Trump pushes for more, crypto markets eye liquidity boost
They did it.
The Fed finally cut.
On Wednesday, Jerome Powell and the FOMC lowered rates by 25 bps to 4.0%–4.25% - the first cut since December - in what Powell called a “risk management” move.
The decision came as jobs data softened, unemployment ticked higher, and inflation stayed stubbornly above target.
Bitcoin barely budged on the headline, holding steady near $116K.
But beneath the surface, the setup is shifting….
Analysts say the cut itself was expected - already priced in. (It was at 96% according to CME Fedwatch)
The real story is the path ahead.
Powell admitted the Fed is divided: 10 officials see two or more cuts this year, while nine see fewer or none.
The median projection points to 3.6% rates by year-end, meaning another 50 bps of easing still on the table.
That uncertainty has markets coiled.
“The dots leaned more dovish, signalling the Fed is open to accelerating the pace of easing if conditions demand it… That repricing risk is now front and center — creating an asymmetric setup for Bitcoin.”
Meanwhile, Trump is turning up the heat.
He’s been hammering the Fed for bigger cuts - even floating Powell’s removal - and markets know more political pressure is coming.
“The next 100 bps could be the most consequential for asset prices this cycle.”
September may be shaky, but history shows Q4 is Bitcoin’s sweet spot.
With nearly ~$7.5T parked in money market funds set to lose yield as rates fall, capital is poised to rotate back into risk.
That’s fuel for equities, crypto, and especially Bitcoin. (More on this in the next section)
As FRNT’s Stephane Ouellette put it:
“Wall Street and Main Street alike are about to enter a fiat devaluation cycle the likes of which hasn’t been seen since 2021. Bitcoin is a clear alternative.”
The takeaway?
The first cut was just the spark. The real rally will come when liquidity floods back in.
And with Bitcoin hovering just 7% below its all-time high, it won’t take much to break through. 🚀
Crypto Nutshell Pro Is Closed 🚧
$7.3 TRILLION LOOKING FOR A HOME 🏠
We’re at the very start of an interest rate cutting cycle.
And Hunter Horsley - co-founder & CEO of Bitwise - just pointed out why that matters more than most people realize.
In his words:
“When rates come down - $7.3 trillion is going to be looking for a new asset to help store value.”
Here’s the setup:
Money market mutual funds are stuffed with a record-breaking $7.3 trillion.
That cash is happy to sit still when interest rates are high - because investors can clip safe 5% yields with no risk.
But when the Fed starts cutting, those yields disappear.
And $7.3 trillion will go hunting for returns. 🦈
We’ve seen this playbook before:
In real estate, cheap money sent valuations soaring.
In equities, it drove P/E ratios from 20 to 36.
This time, crypto is firmly on the menu.
ETFs, pensions, and wealth managers now have Bitcoin & Ethereum access at scale.
The “safe yield” escape hatch is about to vanish, and all that capital needs a new home.
Hunter’s message is simple: when $7.3 trillion starts moving, crypto won’t be ignored.
SUPPLY SHOCK? ⚡
Today we’ll be checking in on the amount of Ethereum available for sale on exchanges.
Here’s how to interpret this metric:
Decreasing exchange balances: Bullish indicator as it signals a shift towards long-term holding 🐂
Increasing exchange balances: Bearish indicator as coins being transferred to exchanges are more likely to be sold 🐻
Only 15.53M ETH remains on exchanges - just 12.82% of total supply.
In the last 90 days alone, 2.92M ETH (worth nearly $13.47B) has been pulled off.
Read that again…
The last time balances were this depleted, ETH went from $30 to $1,500. 🤯
This is how supply shocks start.
ETH is draining off exchanges. Institutions are hoarding. Demand is climbing.
And when vanishing supply collides with rising demand…
There’s only one outcome: liftoff. 🚀
CRACKING CRYPTO 🥜
Solana treasury company stock drops 7% after committing $4 billion to new purchases. Forward's $4 billion ATM offering aims to bolster Solana strategy amid strategic acquisitions and capital needs.
Crypto execs met with US lawmakers to discuss Bitcoin reserve, market structure bills. US Republican lawmakers in the House of Representatives and Senate attended three roundtable discussions on crypto policy and laws with industry leaders this week.
Democrats in Congress Call Foul on Status of Trump's Crypto Czar David Sacks. Senator Elizabeth Warren and others say they're probing whether Sacks has improperly outstayed his "special government employee" status.
Nasdaq-listed crypto treasury GD Culture to add 7,500 BTC after Pallas Capital acquisition closes. Those tokens are worth around $876 million at current prices, making GDC among the top 15 largest publicly traded bitcoin holders.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
p.s. all completely FREE (one click subscribe link)
Raremints (link) - Daily crypto news
Bitcoin Breakdown (link) - Daily Bitcoin news
Techpresso (link) - Daily tech news and insights
The Hustle (link) - Get Smarter on Business and Tech
Your Next Breakthrough (link) - Personal growth with Mark Manson
The Neuron (link) - AI trends and tools to keep you ahead
CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: 2013 🥳
Ethereum’s mainnet launched in 2015, after a 2014 ICO that raised $18 million. 🌐
GET IN FRONT OF 95,000+ CRYPTO INVESTORS
Advertise with Crypto Nutshell to get your product or brand in front of the crème de la crème of crypto investors. Crypto Nutshell readers are high-income earners who are always looking for unique or interesting offers.
HOW DID WE DO? 🤷
We read every comment submitted in this poll and love to hear what you guys have to say. 😁 (bonus points for suggestions 🍪)
What did you think of today's Newsletter?
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.