- Crypto Nutshell
- Posts
- 🥜 Bad News
🥜 Bad News
PLUS: Everyone hates Ethereum
Today’s edition is brought to you by RAREMINTS
GM to all 96,759 of you. Crypto Nutshell #554 huntin’ the truth… 🏹🥜
We're the crypto newsletter that's more intense than a desperate escape through a dystopian train that never stops... 🚆❄️
What we’ve cooked up for you today…
🏦 No rate cuts
👂 No one is listening
📈 It keeps going up
💰 And more…
Prices as at 2:30am ET
NO RATE CUTS 🏦
BREAKING: Federal Reserve's Jerome Powell says there's no need to rush on interest rate cuts
Don't expect interest rates to fall anytime soon…
Speaking in front of a Senate Committee, Fed Chair Jerome Powell had this to say:
“The economy is strong overall… Inflation has moved much closer to our 2% goal, although it remains somewhat elevated… With our policy stance now being significantly less restrictive than it had been, we do not need to be in a hurry to adjust our policy stance.”
(The market was already expecting only two rate cuts for 2025, but now Powell has all but confirmed that’s likely the case)
So when are the rate cuts coming? 🤔
We probably won’t see any cuts until inflation cools further or the job market weakens significantly.
(January inflation data will be released at 8:30am ET today)
The Fed also faces uncertainty surrounding Trump’s proposed tariffs.
Many expect these tariffs to put upward pressure on prices, making it even harder for the Fed to justify lowering rates.
However…
Just last month, Trump declared that he’d “demand that interest rates drop immediately.”
On one side, the President of the United States is calling for immediate rate cuts…
On the other, the Fed insists there’s no rush to lower them.
Bringing even more uncertainty to the markets… (Who’s going to budge first?)
Powell was also asked when QE would begin—and his answer disappointed everyone.
Powell stated that there would be no QE until rates hit zero. 😥
Quantitative Easing (QE): When the Federal Reserve buys bonds and financial assets to increase the money supply and boost economic activity.
Ordinarily, this combination of bad news would have triggered a massive sell-off.
And while the markets did dip, the reaction was far more muted than expected.
Which now has many wondering…
Is this a sign that the bottom is now in?
DISCOVER THE NEXT 100X TOKEN 💎
The Harsh Truth About Crypto: Most retail traders lose money.
While those late to the party finally get in, project founders, VCs and early investors sell their bags for millions.
That said, there are still hundreds of tokens with 100X potential, you just need to find the right ones.
Crypto is an alpha-driven industry, where those who are early gain outsized returns, often for FREE via airdrops.
If you want to join RAREMINTS exclusive community where they break down trending crypto news, hand-pick tokens with 100X potential and share ALL of their trades, click on THIS LINK here.
What to expect:
Trending news, price alerts, and exclusive alpha to stay ahead of the curve
New projects and innovations broken down in under 5 minutes
Hand-picked tokens and memecoins with 100X potential, based on historical data and macro narratives
Join for FREE before others do. Your portfolio will thank you.
NO ONE IS LISTENING👂
This week was not kind to Ethereum, with it dropping ~6%.
But the market is overlooking something crucial - Ethereum is being underestimated.
No one seems to be paying attention.
That’s the latest insight from Hunter Horsley.
Hunter Horsley is the co-founder & CEO of Bitwise. This week he shared this:
This follows speculators piling into the largest Ethereum short position in history this week:
(A short position means investors are betting that prices will drop.)
Ethereum ‘Short’ Positions
While Ethereum short positions are at all-time highs, ETF inflows tell a different story:
While speculators are shorting Ethereum like never before, the ‘smart money’ is buying it up as fast as they can.
Hmmm.
This has been a recurring theme this week...
Smells like opportunity. 👃
IT KEEPS GOING UP 📈
Today we’ll be taking a look the overall stablecoin supply.
Stablecoins are the backbone of crypto liquidity, used for seamless trading and instant cross-border transactions.
The chart below tracks the aggregate change in the total stablecoin market cap.
🟢 Increased stablecoin supply: increased demand and capital inflows into the digital asset space 🐂
🔴 Contractions in stablecoin supply: net capital outflows from digital assets 🐻
The last time we checked in on this metric, the stablecoin market cap was ~$195.62 billion. (29th of January)
Today that number has climbed to ~$201.90 billion. 📈
That’s an increase of ~$6.28 billion in the last two weeks. (And another fresh all-time high)
Here’s the crazy part…
So far in 2025, stablecoins have grown by an additional $16.85 billion.
Capital is now well and truly flooding back into the crypto industry.
Here’s what this means for us:
Stablecoins represent one of the most important metrics for market rallies.
Simply put, more liquidity = Larger potential pumps 😎
CRACKING CRYPTO 🥜
ADA outperforms Bitcoin as Grayscale seeks approval for first US Cardano ETF in SEC filing. Grayscale's application highlights growing institutional interest in Cardano's scalability and decentralized design.
Tokyo-listed gaming studio Gumi acquires 1 billion yen worth of Bitcoin. The BTC purchase is part of Gumi’s broader expansion into the blockchain sector, which includes acquiring and managing “high-quality tokens.”
Bank of England boss says stablecoins require 'high bar' regulations, still exploring a UK CBDC. Bank of England Governor Andrew Bailey said that bitcoin and stablecoins will require different approaches to regulation.
Ether Has Underperformed, but Total Value Locked on Ethereum Is Rising. Ether has dropped over 20% this year, but fundamentals are improving, the report said.
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”)
How often is the difficulty adjustment in Bitcoin?(approximately) |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) 2 weeks 🥳
The difficulty adjusts every 2 weeks to ensure that it takes 10 minutes (on average) to add new blocks to the blockchain.
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?Don't worry, you won't hurt our feelings... 🥲 |
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.
Reply