GM to all of you nutcases. It’s Crypto Nutshell #912 hightailin‘ on by…🐰 🥜

We're the crypto newsletter that's more composed than a monarch reading the room before the crown starts to wobble… 👑🫖

What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: Bitcoin back above $60,000, ETH, SOL recoup losses as AI stocks stage rebound

The cavalry finally showed up.

But…

Crypto missed it.

Earlier this week the AI-chip selloff dragged Bitcoin down with it. Now that exact trade has come roaring back… and Bitcoin just watched it ride off without it.

Micron blew the doors off its earnings (stock up ~15%), Nasdaq futures jumped, South Korea's Kospi surged 6%, and oil slid under $73 as the Iran overhang faded.

Picture-perfect risk-on.

Bitcoin's reply? A fresh 21-month low near $59,000.

It's since clawed back to around $61,500, but the message is hard to spin away.

When stocks fell, crypto fell. When stocks recovered, crypto didn't.

So what's actually breaking?

The bid.

ETF investors are heading for the exits at a pace we haven't seen in years.

Rolling one-year flows just went negative for the first time since 2023, the kind of capitulation that usually only shows up at the ugly end of a cycle.

And Strategy, the market's reliable backstop, just logged its slowest buying week in 18 months while its preferred stock grinds to record lows. (One analyst's advice to Saylor: stop buying.)

Layer in traders drifting into summer, and you get thin volume, no committed buyers, and a market sinking under its own weight.

Bitwise shrugged that we've "seen this movie before."

And history gives that a sliver of support: the last time flows turned negative like this, back in October 2022, Bitcoin bottomed within weeks.

Capitulation is what bottoms are made of.

The heavier signal is the 200-week moving average sitting right beneath us. The last three times BTC tagged that line, the pain lasted months, not days.

However, the next domino drops later today.

Thursday's core PCE is tipped to be the hottest since 2023.

Run hot, and the hawkish-Fed, strong-dollar vice squeezing crypto only tightens.

Come in soft, and bulls finally get a reason to defend $59K.

Either way, this stopped being a war-and-oil story.

It's now a straight test of whether anyone still wants to buy. 🚀

The market is expensive… historically expensive.

Most of the biggest stocks are already fully priced. Capital has crowded into the same mega-cap names — making true value harder and harder to find.

By early 2026, institutional money had stayed concentrated. Smaller companies had been overlooked. And beaten-down names had been left behind.

But here's the real question…

When the broader market is this expensive — which stocks are still cheap enough to offer real upside?

Our new report reveals 10 undervalued stocks trading under $10 per share — from companies too small for institutional money managers to touch… to out-of-favor names already working their way back.

If you're looking for real value in an overpriced market, start here.

View The 10 Stocks Now

To anyone panicking about the current drawdown, Michael Saylor just posted the perfect reminder of how bad it really got last time, and how it turned out.

Saylor is the Executive Chairman of Strategy, the largest corporate holder of Bitcoin on earth.

This week he reshared his full October 2022 speech at the Atlas Society Gala, along with a reflection that should put steel in every holder's spine.

Here's what he posted:

Rewind to October 2022. Bitcoin was trading near $20,000. Strategy held 130,000 BTC worth about $2.6 billion. MSTR was around $24 split-adjusted.

Then it got much worse.

Weeks later, Bitcoin crashed below $16,000. Strategy's debt exceeded the combined value of its Bitcoin and cash by roughly $300 million. MSTR collapsed into the $13 range by year-end. This was the moment every critic was certain Saylor was finished. Margin call. Bankruptcy. Game over.

That was the actual underwater scenario. The one the bears today only theorise about. Saylor lived it.

What did he do? In his words: stayed focused, strengthened the company, and executed the strategy.

Since that bottom, Strategy has raised over $60 billion in additional capital and used it to add more than 716,000 BTC. Today, its Bitcoin and cash reserves exceed all debt by roughly $48 billion.

Let that sink in. From $300 million underwater to $48 billion in the black. From left-for-dead to the largest corporate treasury in history.

That's the lesson hiding in this drawdown. The exact same fear. The exact same obituaries. The exact same "this time it's over" headlines. And the same people taking the long view while everyone else panics.

A 50% correction today? After surviving that?

Tis but a scratch. 🩹

Time for check in on Ethereum’s supply side dynamics.

To do that we’ll be focusing on the amount of Ethereum currently being staked.

Quick Note: Ethereum staking involves locking up ETH to support the blockchain’s security. In return, users earn rewards for staking.

If you’d like to learn more about staking, check out this article.

40.08 million ETH is now locked in staking. Up from 39.63 million two weeks ago.

And there's the milestone: staked ETH just cleared 40 million for the first time ever.

That's the third straight increase - up 450,000 this fortnight alone. The dip we flagged six weeks back - the only decline all year - is a distant memory now. This isn't a recovery anymore… it's a one-way climb setting fresh records every print.

Since January, roughly 4.1 million ETH has flowed into staking contracts. That's supply being deliberately pulled off the table.

A full third of all Ethereum now sits voluntarily locked up - earning yield, parked off the tradeable market, and grinding higher no matter what price or sentiment throws at it. 💪

Kalshi Sues Illinois Over New State Tax on Sports-Related Prediction Markets. Illinois is set to impose a new tax on sports-related prediction-market wagers next week, and Kalshi is challenging the state regime before it starts.

Upheaval at the Ethereum Foundation has some of crypto’s biggest names feeling bullish. EthLabs, Ethereum Foundation layoffs, and the network’s reset are being framed as painful but potentially constructive.

Credit unions managing $25B in assets join stablecoin infrastructure program. Stablecore, Circuit and Curql are giving participating U.S. credit unions access to test stablecoin payments and digital asset services.

Superstate co-founder raises $3.6 million pre-seed for Ground to help fintechs access onchain yield. Ground emerged from stealth with Bain Capital Crypto and ParaFi backing as fintechs look for regulated paths into onchain yield.

Want to get even smarter? Check these out.

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Because what would the crypto world be without its share of memes?

Trivia Answer: A forced closing of a position when the trader's collateral falls too low. 🥳

If a leveraged trade moves too far against the trader, the exchange or protocol can liquidate it to stop losses exceeding the collateral.

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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.