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GM to all of you nutcases. It’s Crypto Nutshell #793 slicin’ through noise… 🔪🥜

We’re the crypto newsletter that’s more nerve-shredding than a town realizing the monster was real all along… 🚨🦈 

What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: JPMorgan says the crypto selloff may be nearing a bottom as ETF outflows ease

JPMorgan says the crypto selloff may be nearing a bottom.

ETF flows are stabilising. Positioning data suggests the de-risking is done.

And liquidity held up better than many thought.

What JPMorgan found

Bitcoin and Ethereum ETFs saw heavy outflows in December while global equity ETFs attracted a record $235 billion in inflows.

That divergence showed how sharply investors cut crypto exposure into year-end.

But January data is telling a different story.

Bitcoin ETFs have logged $439 million in net inflows so far this year.

Ethereum ETFs pulled in roughly $359 million.

Perpetual futures and CME positioning proxies show similar signs of stabilisation - suggesting retail and institutional investors largely completed their position reductions in Q4 2025.

MSCI relief helped

The analysts said MSCI's decision not to exclude digital asset treasury companies from its indexes in February provided "near-term relief, particularly for Strategy-linked exposure."

That removed the risk of forced selling tied to index changes - at least for now.

Liquidity held up

JPMorgan pushed back on the idea that deteriorating liquidity drove the correction.

The bank's market breadth metrics - which measure price impact of trading volumes in CME Bitcoin futures and major Bitcoin ETFs - show little evidence of worsening liquidity.

Instead, the firm argued that de-risking triggered by MSCI's October announcement was the primary catalyst.

The takeaway

JPMorgan concluded that:

Bitcoin trades near $91,000. Ethereum sits around $3,100.

Both remain well off their recent peaks.

But if JPMorgan is right, the worst of the selling pressure is over. 🚀

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While everyone’s been obsessing over short term price action, Abu Dhabi’s been doing the opposite.

According to their latest report, the Abu Dhabi Investment Council more than tripled its Bitcoin exposure into the volatility of late 2025:

And the size matters:

This isn’t framed as a trade either. It’s framed as a portfolio asset:

Zoom out and it fits a bigger UAE strategy.

The cleanest takeaway is the simplest:

When a state owned fund from one of the richest countries is putting reserve money into Bitcoin exposure, that’s not nothing.

It’s a new world. 🌍

Today we’ll be taking a look at the amount of wallets that hold at least some Bitcoin. (anything greater than 0)

This metric offers a bird’s-eye view of user activity and adoption across the Bitcoin network.

But there’s a slight catch…

One wallet does not equal one user. A user can have many wallets.

What matters here is the trend of the chart.

There are now 57.75 million wallets holding Bitcoin.

That's roughly 100,000 more wallets than two weeks ago.

Zoom out - this number is up 3.28 million since the start of 2025.

Price has been choppy. Sentiment has turned sour. ETF flows have been messy.

And yet adoption hasn't slowed.

More wallets. More holders. More distribution.

The base keeps widening. 💪

Zcash Plunges Double Digits After ECC Team ‘Constructively Discharged’. In a statement, the board said that the disagreements stemmed from recent proposals to privatize the Zashi mobile wallet.

BlackRock Buys $900M BTC as Long-Term Selling Hits 2017 Lows. Institutional investors ramped up their Bitcoin buying as a sharp drop-off in selling suggests that BTC is reversing its bear trend.

Bitcoin price outlook: BTC's 'boring' price action likely to continue, say analysts. Experts say the next major rally may come only when long-term holders are exhausted, and true institutional capital enters the market.

Morgan Stanley continues crypto push, plans wallet in the second half of 2026. Morgan Stanley's head of wealth management told Barron's the firm plans to launch a proprietary digital wallet later this year.

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Are you ready for this week’s quiz?

5 questions. All from this week’s issues. If you’ve been paying attention, you’ll crush it. If you’ve been skimming, it’ll show.

Tap the button below to start this week’s quiz, then tell us how you scored in the poll at the bottom of this newsletter. 👇️

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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.