GM to all of you nutcases. It’s Crypto Nutshell #729 studyin’ the charts… ☕🥜

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What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: US and China soften trade rhetoric, giving analysts hope of market rebound

Friday was absolute carnage…

According to Bitwise’s Jonathan Man, more than $20 billion in positions were liquidated - the largest wipeout in crypto history.

Bitcoin plunged 13% in a single hour.

Open interest collapsed by $65 billion, erasing weeks of buildup and resetting positioning all the way back to July.

Altcoins fared even worse - ATOM briefly hit zero before clawing its way back.

Liquidity vanished. Order books thinned. And exchanges triggered auto-deleveraging to stop the bleeding.

By Saturday morning, the market was gutted - but not dead.

Man summed it up simply:

Then came the relief that the markets needed…

By Sunday, the same force that triggered the crash - Trump’s 100% China tariffs and Beijing’s rare-earth retaliation - suddenly flipped tone.

China’s Ministry of Commerce announced it was “ready to strengthen dialogue” adding that its export controls would have “minimal impact on global supply chains.”

Trump echoed the shift on Truth Social:

And just like that, sentiment snapped back.

Bitcoin rebounded above $114,000, up 3% on the day.

ETH, SOL, and DOGE surged between 10–14%, clawing back some of Friday’s losses.

Vice President Vance confirmed the de-escalation on Sunday, saying Trump remains “a reasonable negotiator” - a statement traders took as code for cooler heads prevailing.

Still, perspective matters:

BTC remains down 7% on the week, ETH 8%, and altcoins nearly double that.

The scars of Friday’s liquidation cascade haven’t fully healed.

But as Man noted, positioning is now clean, leverage flushed, and liquidity providers re-entering the market.

In other words: the reset is done.

If history rhymes, this wasn’t the end of the bull - it was the clearing event before the next leg higher.

And let this be a reminder to everyone…

Please don’t use leverage…

Investors face a dilemma. Headlines everywhere say tariffs and AI hype are distorting public markets.

Now, the S&P is trading at over 30x earnings—a level historically linked to crashes.

And the Fed is lowering rates, potentially adding fuel to the fire.

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What a weekend.

The largest crypto liquidation event in history - over $20 billion in leverage wiped out - and then a hard rebound straight after.

While most panicked, Raoul Pal stayed calm.

If you’ve been in crypto long enough, you could recognise what this was:

A flash crash gift. 🎁

As the crash unfolded, Raoul tweeted:

That’s how he saw the biggest crypto flush ever - a chance to buy strength, not fear.

Then, as the dust settled, he zoomed out:

In other words:

Even the largest liquidation in history barely dented the long-term structure.

The liquidity wave that’s been building all year hasn’t gone anywhere.

And today, Raoul summed it up perfectly:

That’s the key.

Leverage is gone. Liquidity remains. Structure intact.

Raoul’s takeaway?

This wasn’t the end of the cycle - it was the reset before the next leg higher. 🌊

Time for a check-in on the Long/Short-Term Holder Threshold.

Here’s how this metric works:

This metric is powerful because it shows exactly what price range long and short term holders bought their Bitcoin at. 🔍

The new key cutoff date is May 10, 2025 - when Bitcoin was trading at around $105K.

Anything bought before that? Long-term (LTH).
After? Short-term (STH).

Here’s the breakdown:

OOver the past two weeks, long-term holders have offloaded a net 73,919 BTC - a hint of profit-taking (or maybe a touch of panic during the flash crash).

But the bigger picture? Still crystal clear.

More than 70% of all Bitcoin remains in long-term hands.

That’s not weakness - that’s conviction.

The base is solid. The supply is tight.

And when conviction meets scarcity… price doesn’t drift.

It detonates. 💥

Bitmine acquires 128,718 ETH after the crash as institutions buy the dip. Bitmine accumulated 128,718 ETH ($480M) after the crypto market crash, leveraging their holdings for staking and liquidity yields.

‘Largest Ever’ Crypto Liquidation Event Wipes Out 6,300 Wallets on Hyperliquid. The sell-off erased over $1.23 billion in trader capital on Hyperliquid and $19 billion across the crypto market in a 24 hours.

Binance pays $283 million in compensation following Friday's depegs, covering user losses. The exchange also batted away claims that a targeted attack on Binance led to the broader asset crash, arguing the depegs happened after the crash.

'Very high chance' this is the start of the crypto bull market. Crypto trader Alex Becker said in a video published to YouTube on Saturday that the crypto market “wipeout just reset everything” and he is confident it is the start of the bull run.

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Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)

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

Trivia Answer: Satoshi 🥳

Each Satoshi (sat) equals 0.00000001 BTC, allowing microtransactions on the Bitcoin network. 💰

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