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GM to all of you nutcases. It’s Crypto Nutshell #562 readin’ up… 📖🥜

We're the crypto newsletter that's more exhilarating than flying at Mach 10 with no room for error... ✈️🔥

What we’ve cooked up for you today…

• 😱 Largest hack in history

• 💚 A good sign…

• 💪 Strong conviction

• 💰 And more…

What’s in the Crypto Nutshell Portfolio?

LARGEST HACK IN HISTORY 😱

BREAKING: North Korea's Lazarus Group responsible for Bybit hack resulting in losses of over $1.5 billion

Fridays have been absolute pain for crypto lately:

• Friday 17th Jan - Trump memecoin liquidity drain

• Friday 24th Jan - Deepseek AI dump

• Friday 31st Jan - Trump Tariff panic

• Friday 14th Feb - LIBRA memecoin rug - President of Argentina rug pull

• Friday 21st Feb - ByBit hacked for $1.4 billion

Something bad has happened basically every single Friday.

But let’s focus on the ByBit hack—and why it might actually be bullish. (We know that sounds a little odd but stick with us here)

Last week, ByBit got hit by the largest hack in crypto history, with North Korea’s Lazarus Group stealing over 400,000 ETH ($1.4B).

The attack targeted ByBit’s multi-signature cold wallet, tricking transaction signers with a fake UI while malicious smart contracts drained the funds.

The good news was that ByBit handled this situation incredibly well, meaning customer funds were not impacted at all.

ByBit CEO Ben Zhou had this to say soon after the news broke:

According to data from Lookonchain, since the hack ByBit has received ~446,870 ETH through loans, whale deposits and ETH purchases.

Zhou also announced that ByBit is set to release an audited proof of reserves to confirm full 1:1 backing.

So why is this bullish? 🤔 

Ordinarily a hack of this magnitude would have absolutely wrecked the market.

But…

That didn’t happen.

Since the hack, Bitcoin and Ethereum are pretty much exactly where they were before.

And altcoins even rallied off the back of this news…

More on why this is so bullish in the next section…

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A GOOD SIGN… 💚

Despite the largest crypto heist in history, the market remains unfazed.

As we mentioned earlier, over 400,000 ETH was stolen from ByBit in one of the largest crypto heists in history.

Yet, crypto prices barely budged - that’s a green flag.

That’s the latest out of Jesse Eckel.

If you don’t know Jesse Eckel, he’s a crypto analyst with an impressive track record.

Jesse went from being unemployed during the 2020/2021 bull run to building a crypto portfolio worth over $1.7 million by the end of the cycle.

Now, he's working to grow it to $10+ million in the current cycle.

This week, Jesse highlighted the resilience of the market:

Macro-economic expert & technical analyst Pentoshi added:

When markets shrug off bad news, it often signals a bottom. Conversely, the market ignoring good news often indicates a cycle top.

Despite the Bybit hack, the crypto market's resilience suggests strength.

This is not the time to be bearish. 🐻

STRONG CONVICTION 💪

Let’s kick off the week with a checkin on the Bitcoin HODL waves! 🌊 

Each coloured band shows the percentage of Bitcoin that last moved within that time period.

As the colours get cooler, the age bands get older (purple being the oldest, representing coins last moved more than 10 years ago).

As always, we’ll be focusing on long-term holders today. (coins held for more than 6 months)

Here’s the current breakdown compared to two weeks ago:

• 6m - 12m: 9.73% (up from 9.56%)

• 1y - 2y: 9.14% (up from 8.91%)

• 2y - 3y: 7.35% (down from 7.46%)

• 3y - 5y: 14.88% (down from 14.94%)

• 5y - 7y: 5.99% (down from 6.03%)

• 7y - 10y: 7.60% (up from 7.57%)

• >10y: 17.00% (up from 16.96%)

That means 71.69% of Bitcoin’s supply has NOT moved in over 6 months.

That’s also an increase of 0.26% from two weeks ago.

But what does this mean? 🤔

The “youngest” long-term holders (6m - 12m & 1y - 2y) both saw increases, meaning that more and more holders are aging into long-term holders.

Whilst there was a little bit of selling seen from coins aged between 3 years and 7 years…

The ultra long-term holders (7y+) also continued stacking.

The biggest takeaway?

A small amount of supply is re-entering circulation, but the majority of Bitcoin remains locked up.

Conviction is still strong. Supply is tight.

CRACKING CRYPTO 🥜

Pump.fun sees decline in fees, users, and token launches after LIBRA incident. The fees collected by Pump.fun shrunk by 32% in a week, falling below the 15,000 SOL daily average for the first time since late December.

Strategy's Michael Saylor hints at resuming Bitcoin buying spree. The company continues progressing with its 21/21 plan to purchase more BTC following its most recent $2 billion convertible note offering.

SEC Drops OpenSea Investigation Easing Pressure on NFT Market. The regulator’s decision comes after Coinbase said the SEC will vote on a deal to abandon its enforcement case against it.

Non-KYC exchange eXch denies money-laundering allegations as ETH reserves spike following Bybit hack. Blockchain analysts traced funds from the Bybit hack to eXch, which saw its ETH reserves spike over the weekend.

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: D) January 2018 🥳

BitConnect shut down in January 2018.

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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.