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GM to all of you nutcases. It’s Crypto Nutshell #678 keepin’ chill… 🧊🥜

We're the crypto newsletter that's more outrageous than a cop undercover in a high school trying to bust a drug ring... 🎒🚓

What we’ve cooked up for you today…

• 🏦 What’s going on?

• 🧠 A timely reminder…

• 💪 Holding tight

• 💰 And more…

What’s in the Crypto Nutshell Portfolio?

WHAT’S GOING ON? 🏦

BREAKING: Three Reasons Traders Are in Risk-Off Mode

That’s not the start to August we were looking for…

The crypto market just got smacked with a brutal one-two punch: nearly $1 billion in ETF outflows and a sharp sell-off in both Bitcoin and Ethereum.

On Friday alone:

• Spot Bitcoin ETFs saw $812M in outflows, the second-largest single-day outflow ever.

• Ethereum ETFs snapped their 20-day inflow streak, bleeding $152M.

• BTC dropped to $112,000, while ETH fell 3.7%, mirroring broader market jitters.

So what sparked the panic?

Risk-off sentiment.

First, the U.S. jobs report was an absolute disaster.

July saw just 73,000 jobs added, with a 258,000 job downward revision for May and June.

Long-term unemployment jumped. And confidence tanked.

Second, Trump fired the BLS commissioner, accusing her of election interference:

And third, the nuclear rhetoric escalated:

The result? Investors bailed.

Crypto, already on edge, took the hit hard.

While BlackRock’s IBIT and ETHA held steady, Fidelity’s FBTC shed $331M, ARKB dropped $327M, and Grayscale products saw tens of millions in outflows.

It’s a dramatic reversal from July’s record-breaking ETF inflows, where optimism ran high and demand was relentless.

But behind the scenes, some see opportunity.

Standard Chartered reports that corporate treasuries are now buying ETH at twice the pace of BTC, already scooping up 1% of the total ETH supply since June.

The bank believes this could be the fuel that pushes ETH above $4K by year-end - especially if treasuries lean further into staking and DeFi.

The bottom line?

This isn’t just volatility - it’s a conviction check.

Yes, prices dipped. Yes, inflows paused.

But smart money is still accumulating - especially Ethereum.

And when the fear clears, the next leg up could already be locked and loaded.

Big investors are buying this “unlisted” stock

When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs behind Uber and eBay also backed Pacaso. They made $110M+ in gross profit to date. They even reserved the Nasdaq ticker PCSO. Now, you can join, too.

Invest for $2.90/Share

_{Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.}

A TIMELY REMINDER… 🧠

Crypto just had a rough week, to say the least.

Bitcoin’s down ~5%. Ethereum? Down ~10%.

But Bitwise CIO Matt Hougan just dropped his 100th investor memo…

And it came with a timely reminder:

Why do we crypto at all?

Before the market’s volatility has you throwing in the towel, Matt boiled it down to 2 simple reasons we’re in crypto at all:

1. Because the current system is broken.

In case you hadn’t noticed, the current financial system sucks:

• Checking accounts: 0.07% interest 💸
• “Savings” accounts: 0.38% interest 💤
• Checks: Take 5 days to clear 🐢
• Visa: Pays merchants in 3+ days 🏦
• The dollar? It’s ~80% of its value in Matt’s lifetime 📉

2. If you zoom out, it’s obvious.

Crypto already offers:

• Instant payments ⚡
• Real-time yield 🕒
• 24/7 access 🔓
• Global settlement 🌍
• $0.002 on-chain transfers 🧠

Zoom out:

• The dollar loses value over time
• Bitcoin gains value over time

One chart goes down.
One goes up.

It’s not complicated.

So while the market chops around?

Remember the mission. 🧭

And zoom out.

HOLDING TIGHT 💪

Time for a check-in on the Long/Short-Term Holder Threshold.

Here’s how this metric works:

• 🔴 Short-Term Holders (STHs): Coins held for less than 155 days

• 🔵 Long-Term Holders (LTHs): Coins held for more than 155 days

• 🟥 Short-Term Holder Cost Basis: All coins purchased in this price range are STHs

• 🟦 Long-Term Holder Cost Basis: All coins purchased in this price range are LTHs

This metric is powerful because it shows exactly what price range long and short term holders bought their Bitcoin at. 🔍

The new key cutoff date is March 2, 2025 - when Bitcoin was trading just under $94,000.

Any BTC acquired before that is now classified as long-term (LTH).

Anything after? Short-term (STH).

And here’s where things stand:

Long-term holders now hold 14.50 million BTC - that’s 72.86% of the entire circulating supply.

Short-term holders? Just 2.52 million BTC, or 12.66%.

Over the past 90 days, a net 117,426 BTC has migrated into long-term hands - a strong show of conviction from holders who refuse to flinch.

But last week told a slightly different story…

Roughly 35,508 BTC was moved out of long-term wallets - likely a wave of profit-taking after BTC flirted with all-time highs.

The takeaway?

Yes, some holders are locking in gains.

But the bigger picture hasn’t changed: long-term conviction is intact.

The strong hands are still holding tight. 💪

CRACKING CRYPTO 🥜

There is no second best: Bitcoin consistently outperforms all major assets despite near-term selloff. Despite the recent market dip, Bitcoin remains the top-performing asset over the past 2 years, outpacing gold, stocks, ETH, and crude oil.

Iconic Satoshi Nakamoto statue recovered by Lugano municipality. The statue commemorating Bitcoin creator Satoshi Nakamoto in Lugano, Switzerland, was removed and vandalized but has since been recovered.

10% Weekly Loss Clashes With $300M Whale Buy. Ether's price fell nearly 10% this week, breaking a five-week winning streak amid broader market jitters.

Coinbase's Q2 earnings point to shrinking USDC margins for Circle, Mizuho says. The analysts estimate Circle paid more than half of the total interest income it earned from USDC reserves to Coinbase.

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: It has a fixed supply cap of 21 million 🥳

Bitcoin’s fixed supply means no central authority can print more - unlike fiat currencies, which lose value as supply expands. It’s money with rules, not rulers. 🏛️🪙

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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.