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GM to all of you nutcases. It’s Crypto Nutshell #813 tryin’ not to cry… 🧅🥜

We’re the crypto newsletter that’s more relentless than a cop chasing a killer who refuses to play by the rules… 🚓🔪

What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: Bitcoin Flash Crashes to $60K in Worst Day Since FTX as Strategy and BitMine Losses Top $17 Billion

Bitcoin just had its worst day since FTX collapsed…

BTC flash crashed to $60,000 on Thursday night - its lowest level since September 2024.

It's since bounced to around $65k but the damage is severe. Bitcoin is now down 50% from October's all-time high of $126,000.

Over $2.67 billion in positions were liquidated in 24 hours. $2.31 billion of that came from longs.

"Traders are no longer trying to catch falling knives," said BTC Markets analyst Rachael Lucas. "They're prioritizing capital preservation."

Strategy posts $12.4 billion loss

Bitcoin's biggest corporate holder is deep in the red.

Strategy reported a $12.4 billion loss in Q4 2025 as Bitcoin fell from $120,000 to $89,000 over the quarter. Things have only gotten worse since.

The company now holds 713,502 BTC at an average cost of $76,052. With Bitcoin trading around $64,000, that's $9.2 billion in paper losses - down 17.5% on its entire position.

But executives say there's no reason to panic.

Strategy has $2.25 billion in cash - enough to cover 30 months of dividends. No major debt matures until 2027.

"I'm not worried, we're not worried, and no, we're not having issues," CEO Phong Le told investors.

BitMine's losses top $8 billion

Ethereum treasury giant BitMine is in even worse shape.

The firm holds 4.28 million ETH at an average cost of $3,883. With ETH crashing 34% this week to around $1,867, BitMine is now sitting on $8.4 billion in unrealized losses.

Combined, Strategy and BitMine are down over $17 billion on paper.

IBIT sets volume record

BlackRock's spot Bitcoin ETF had its busiest day ever on Thursday - but not for good reasons.

IBIT traded $10 billion in volume, crushing its previous record. The fund dropped 13%, its second-worst daily decline since launch.

But here's the surprising part: ETF investors aren't panic selling.

Despite Bitcoin dropping 40%+ from highs, only 6.6% of ETF assets have exited, according to Bloomberg's Eric Balchunas.

"For now, the ETF boomers have really come through," he said. "A selloff doesn't mean the end. It just means it's a selloff."

Where's the bottom?

Analysts point to the $58,000-$60,000 range as key support.

That's where Bitcoin's 200-week moving average sits - and where heavy buying interest has clustered historically.

For now, conviction is being tested like never before. 🚀

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Hunter Horsley just summed up the market in one sentence.

If you’re newer here, Horsley is the CEO of Bitwise, one of the largest crypto asset managers on Earth, overseeing billions for institutions.

His job is literally to study capital flows and position ahead of them.

So when he points something out, it’s usually worth pausing.

This week he tweeted:

Zoom out and you can see exactly what he means.

Gold & silver have been ripping.

New highs. Constant inflows. Institutional demand everywhere.

Now think back to every cycle.

Gold tends to move first.
Bitcoin tends to follow.

Not instantly. But violently once it starts.

The problem?

Buying strength feels safe. Buying Bitcoin while sentiment is shaky is uncomfortable.

That’s why Horsley called it hard.

But the framework is simple.

By the time it feels obvious… it usually isn’t cheap anymore. 🧩

Today we’ll be taking a look at the amount of wallets that hold at least some Bitcoin. (anything greater than 0)

This metric offers a bird’s-eye view of user activity and adoption across the Bitcoin network.

But there’s a slight catch…

One wallet does not equal one user. A user can have many wallets.

What matters here is the trend of the chart.

There are now 58 million wallets holding Bitcoin.

That's another 150,000 wallets in just two weeks.

Bitcoin's down from its highs. Fear's elevated. The macro backdrop is messy.

And yet adoption keeps accelerating.

More wallets. More distribution. More resilience.

The network keeps expanding. 💪

Tom Lee's BitMine Hits 7-Month Stock Low as Ethereum Paper Losses Reach $8 Billion. Shares in publicly traded Ethereum treasury firm BitMine Immersion Technologies have fallen to a seven-month low as unrealized losses mount.

Polygon to Migrate Prediction Market Settlement to Circle-Issued USDC. Polymarket will replace bridged USDC on Polygon with Circle-issued native USDC, shifting its prediction market settlement infrastructure away from cross-chain bridges.

U.S. Treasury's Bessent calls out crypto 'nihilists' resisting market structure bill. Treasury Secretary Bessent said market participants who don't want strong regulation should "move to El Salvador."

JPMorgan says bitcoin could reach $266,000 'long term' as it looks more attractive than gold. That target is “unrealistic” this year, but possible “over the long term” once negative sentiment reverses, according to the analysts.

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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 🥳

Satoshi (or "sat") is the smallest divisible unit of Bitcoin, named after its creator Satoshi Nakamoto. One Bitcoin equals 100 million satoshis.

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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.