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GM to all of you nutcases. It’s Crypto Nutshell #711 gone fishin’… 🎣🥜

We're the crypto newsletter that's more exhilarating than a treasure hunt spanning continents with clues hidden in plain sight... 🗺️🔑

What we’ve cooked up for you today…

  • 🏦 Is the rate cut priced in?

  • 🧪 Bitcoin pop quiz

  • 🤑 Are long-term holders cashing in?

  • 💰 And more…

Prices as at 4:15am ET

IS THE RATE CUT PRICED IN? 🏦

BREAKING: Bitcoin and Ethereum prices remain steady as traders brace for Fed rate cut

The stage is set.

Markets are pricing in a 96% chance the Fed delivers a 0.25% cut today - and Bitcoin traders know it.

BTC has hovered around $115K–$116K all week, steady but coiled, waiting for Jerome Powell’s move.

But some analysts say the cut itself is already baked in.

“It does seem to be pretty priced in… [A cut] has been digested by the markets. Where it gets interesting is what Powell says afterwards—that's where you'll see crypto markets flatten out or rally.”

Juan Leon, Bitwise senior investment strategist

The real action comes after, when Fed Chair Jerome Powell takes the mic.

  • A dovish tone could light a fire under crypto.

  • A hawkish one could flatten it out.

Still, traders haven’t ruled out a bigger surprise.

CME FedWatch shows overwhelming odds for 25 bps, but prediction markets like Polymarket still see a slim chance of 50 bps cut.

That would be the spark for a renewed leg higher, says 21Shares strategist Matt Mena:

“A 25 bps cut is already in the price, but a surprise 50 bps would likely act as the spark for a renewed leg higher.”

Matt Mena

And ETF flows tell the story.

U.S. spot Bitcoin ETFs just notched six straight days of inflows, adding $260M on Sept. 15 alone.

Spot Ether products have seen five consecutive days of net inflows, stacking $360M.

Institutional appetite is creeping back just as the Fed prepares to ease.

The risk? A cautious Powell. As Capital.com’s Kyle Rodda warned, a “measured, less dovish” stance could lift the dollar, pressure equities, and leave crypto chopping sideways.

But history leans bullish. September is often shaky, yet Q4 has consistently been Bitcoin’s strongest season.

The takeaway?

The cut itself may not move the needle. Powell’s words will. And in a market already leaning into Q4 optimism, it won’t take much to ignite the next leg higher.

But that’s just the short-term story

What about the long-term?

We’ll be breaking that down in the next section. 🚀

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  • “Am I too late?”

  • “When is it time to sell?”

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BITCOIN POP QUIZ 🧪

We’re about to head into an interest rate cutting cycle.

So let’s do a pop quiz. 🤠

Fred Krueger - mathematician, ex–hedge fund manager, and diehard Bitcoiner - just laid out a 3-part case for what happens when money printing meets markets.

And the answer to this quiz?

It’s the answer to where Bitcoin’s price is heading over the next few months. 👀

In a series of tweets, Fred laid it out:

Part 1: Real Estate

Part 2: Stocks

Part 3: Bitcoin

History shows what easy money does to houses and stocks.

The only question left: what do you think it’s about to do for Bitcoin? 🚀

ARE LONG-TERM HOLDERS CASHING IN? 🤑

Let’s check in on one of our favourite metrics: Bitcoin’s supply last active 1+ years ago.

It’s a simple but powerful signal - tracking how much BTC has remained untouched as a percentage of total circulating supply.

Here’s the logic:

  • Metrics rising: long-term holders are accumulating coins 📈

  • Metrics declining: long-term holders are selling coins 📉

Here’s the latest supply breakdown vs. two weeks ago:

  • 🔴 Supply last active 1+ years ago: 60.91% (down from 61.07%)

  • 🟠 Supply last active 2+ years ago: 50.45% (down from 50.62%)

  • 🟢 Supply last active 3+ years ago: 43.43% (down from 43.59%)

  • 🔵 Supply last active 5+ years ago: 30.04% (unchanged)

That means more than 60% of all BTC hasn’t moved in a year.

The standout?

Every cohort except the 5+ year band ticked lower - hinting that some long-term holders are cashing in modest profits, maybe front-running the Fed’s expected rate cut today.

But zoom out, and the signal is crystal clear: nearly two-thirds of supply is locked down, unmoved.

Conviction this deep doesn’t just impress - it builds the foundation for explosive upside once demand comes flooding back. 💎🚀

CRACKING CRYPTO 🥜

Strategy keeps expanding Bitcoin reserves amid declining stock premium. Michael Saylor's Strategy aggressive Bitcoin accumulation faces significant headwinds with falling MSTR stock prices.

Is Ethereum’s DeFi Future on L2s? Liquidity, Innovation Say Perhaps Yes. Even as ether hit record highs in late August, decentralized finance (DeFi) activity on Ethereum’s layer-1 (L1) looks muted compared to its peak in late 2021.

Google unveils open-source protocol for AI payments with stablecoin support. Google’s new open-source protocol lets AI apps send and receive payments, including stablecoins, in partnership with Coinbase and over 60 other firms.

Eric Trump defends UAE-Binance deal, says his father is 'first guy who hasn't made money off of the presidency'. President Trump's son defended against any questions of conflict of interest when asked about the $2-billion UAE-Binance deal.

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”)

What consensus mechanism secures the Bitcoin network?

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MEME CORNER 😂

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

Trivia Answer: Proof of Work 🥳

Over 99% of Bitcoin will be mined by 2040, but the very last fraction won’t be mined until 2140. ⏳

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