GM and welcome to The Crypto Nutshell! 🫶 🥜 

The crypto newsletter that's more rewarding than waking up to find a secret wardrobe that leads to a magical world frozen in eternal winter. ❄️

Today, we’ll discuss:

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

• Michael Saylor - why a tsunami of capital is coming 🌊

• Bitcoin whale watching 🐋

• And more…

MARKET WATCH ⚖️

BTC Dominance is currently at 49.95% and the current crypto market cap is $1.17T ▲0.14%

Biggest Winners of The Day 🤑

• Solana(SOL) ▲3.06%

• XRP (XRP) ▲1.67%

• Dogecoin (DOGE) ▲1.34%

Biggest Losers of The Day 😭

• Polygon (MATIC) ▼2.12%

• Cardano (ADA) ▼0.78%

• Avalance (AVAX) ▼0.41%

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

BlackRock shilled Bitcoin again…back in 2022…

Turns out they dropped a report back in 2022 outlining what the optimal portfolio allocation would be in terms of risk vs reward.

Ready for the bombshell?

They discovered that the optimal portfolio is:

• 84.9% Bitcoin

• 9.06% Stocks

• 6.04% Bonds

84.9% Bitcoin??? 😱

What the heck is going on?

It’s important to note that this allocation is only true for a 60-40 stock-bond portfolio split. It’s still crazy to see this number come out of BlackRock.

We’ll have to wait and see what they come out with regarding their recent Bitcoin ETF application. Stay tuned, you know we’ll keep you updated.

All price data as of 7:55am ET

EXPERT OF THE DAY - MICHAEL SAYLOR ⛵

Trillions of dollars is coming for Bitcoin is the message out from Michael Saylor.

The man who truly spearheaded the institutional wave of Bitcoin adoption believes that Bitcoin has crossed the event-horizon and a tsunami of capital is coming.

In his latest interview, Saylor broke down three main drivers of Bitcoins advancement:

1. The digital transformation of property → physical to digital property

2. The conversion of corporate balance sheets from debt assets to property assets

3. The digital transformation of money, the ability to move money at the speed of light.

Saylor used this analogy to illustrate his argument.

Imagine two different companies that are located in London. One company owns $1 Billion dollars of property in London. The other company owns $1 Billion in cash. The pound is getting inflated by 12% per year. This means that the currency is losing 12% of its value between January 1st and the end of the year.

The first companies balance sheet is going to go up by 12%, meaning it makes $120 Million pounds by the end of the year.

The second companies balance sheet is going to go up 0%, however the cash has now lost 12% of its value.

Saylor says to extrapolate this out 10 years and let compounding take place.

The first company with property on its balance sheet is going to be worth 3x more. The second company with cash on its balance sheet is going to be worth the same.

However, the cash it has is now only worth 1/3rd of what it was.

Saylors point?

You can’t just buy $1 Billion dollars worth of London real estate. You need to buy incremental property. The best digital property?

Bitcoin.

Nuttys Takeaway: Saylor has a great point. There are massive companies out there such as Apple or Berkshire Hathaway that are sitting on hundreds of billions of dollars of cash.

Let’s be conservative and say true inflation is around 10%.

Over 10 years, with the miracle that is compounding, that cash would lose 65.13% of its purchasing power.

Over 100 years?

That cash is completely worthless now.

This will force companies to act & we think a portion of that cash will find its way into digital assets.

ON CHAIN DATA DIVE 📊

Time for some whale watching. 🐳

Did you know that the amount of whale sightings in the Bitcoin network has been steadily declining since the 2021 bull run?

What’s a bitcoin whale? simply any wallet that holds more than 1,000 bitcoin is considered to be a whale.

Taking a look at the chart above you’ll notice that the amount of Bitcoin whales reached a peak in 2021, with 2169 whales on record.

However, you’ll also notice that the current whale count is only at 1672. The number of whales sharply declined in the first half of 2021 before more or less flattening out until May 2022. A little event known as the Terra/Luna collapse once again accelerated the decline in whales.

🚨The whale count is currently at it lowest level in more than 3 years 🚨

It’s worth mentioning that the majority of the richest BTC wallets belong to exchanges, with Binance topping the charts holding 248,597 BTC worth ~$7.27 Billion. Take a look at this list from BitInfoCharts displaying the top 100 BTC holders.

What does this mean?

• Improved decentralisation properties: one institution isn’t controlling the majority of supply

• Reduced risk of market manipulation: less risk of whales dumping large amounts of BTC all at once

Nutty’s Takeaway: Overall this info is bullish for the market. Coins being spread out between investors will always be a good thing for the Bitcoin network. This results in improved decentralisation and less risk of market manipulation.

CRACKING CRYPTO 🥜

TRIVIA TIME ✍️

When was the first Stablecoin launched

• A) 2011

• B) 2014

• C) 2009

• D) 2013

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: B) 2014 🎉

Launched in 2014, BitUSD was the first stablecoin issued as a token on the BitShare blockchain. Created by Charles Hoskkinson and Dan Larimer, checkout this article for more.

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.