GM to all of you nutcases. It’s Crypto Nutshell #901 tip-toein‘ on in…👣🥜

We're the crypto newsletter that's more clear-eyed than a police chief closing the beach before the second fin slices through the moonlight… 🦈🚨

What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: Bitcoin may act as a ‘canary in the coal mine’ as risk-off pressure spreads: Bitwise

Bitcoin's back on the edge.

At the time of writing, BTC was sitting at around $61.2K this afternoon, with the 24-hour low around $60.9K.

It’s not a complete disaster…

But it's close enough to make $60K the whole conversation again.

What's different this time is what's pulling on it.

This isn't just Bitcoin failing a chart level.

It's Bitcoin losing an attention war.

Against AI. Against mega-IPOs. Against the most popular risk trades in the market.

Bernstein analysts reckon Bitcoin-related inflows have slowed sharply this year as investors chase the AI trade instead.

And that's the part that stings.

Bitcoin's supposed to be one of the great liquidity assets.

Right now the market looks more interested in data centres, AI capex, and the next giant tech listing than in catching another crypto dip.

ETF flows back that statement up…

The recent direction's been soft, not the strong institutional bid bulls want to see near major support.

So BTC's still stuck in an awkward spot.

The bearish read is simple… If capital keeps rotating into AI and away from crypto, every little bounce just becomes exit liquidity.

The calmer read?

This is still a shallow drawdown by bear-market standards, not a full cycle collapse.

Stablecoin’s are still parked on the sidelines. Global liquidity hasn't gone anywhere. And if Bitcoin can hold the low $60Ks, this could still end as an ugly-but-normal shakeout.

Buyers really need to step in and prove that soon.

Because $60K isn't only another round number anymore.

It's the line between "nervous but holding" and "the floor's being tested properly."

For now, Bitcoin's still above it.

Barely.

And that word's doing a lot of work. 🚀

AI is moving from experiment… to essential.

Every major industry is integrating it.
Every major company is investing in it.

By late 2025, AI was already an $800B market — growing at a pace that could push it well beyond $1 trillion in the years ahead.

Cloud infrastructure is scaling fast.
AI-enabled devices are multiplying.
Automation is becoming standard.

But here’s the real question…

When trillions flow into this transformation — which stocks stand to benefit most?

Our new report reveals 10 AI stocks positioned across the backbone of this shift — from the companies powering the infrastructure… to those embedding intelligence into everyday systems.

If you want exposure to one of the defining growth trends of this decade, start here.

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Not everyone is calling the bottom. And the most data-driven analyst in crypto just laid out why.

Ben Cowen is the founder of Into The Cryptoverse, known for his unemotional, quantitative approach to cycles. His latest video cuts against the bullish chorus.

His headline: Bitcoin just swept the February low. And that was always his base case.

His framework compares this cycle to 2018 and 2019, and so far the script is playing out almost identically. February lows. A rally to the 200-day moving average. Rejection. New low in June.

The stat that reframes everything? On average, Bitcoin is down 31% at this point in midterm years. Right now we're down 32%. This is a completely normal midterm year.

His best guess from here: a June low, a relief rally, then a final low in October.

But here's the part bulls and bears can agree on:

Buying the second half of a midterm year has historically worked far better than the first half. And we just entered the second half.

Cowen could be wrong. He admits no one knows. But when bulls are loud, it pays to hear the most disciplined bear in the room. 📊

Today we're looking at BTC Risk - a simple way to gauge where we are in the cycle.

BTC Risk compresses years of price action into a number between 0 and 1:

It doesn't call exact tops or bottoms. It shows you when risk-reward is tilted in your favour.

Current BTC Risk: 0.300 (two weeks ago: 0.370)

Right back to the floor.

Two periods ago this metric peaked at 0.392 after a long grind higher. It's now posted a second straight drop - 0.370 down to 0.300 - wiping out nearly that whole climb. At 0.300 we're at the lowest level we've tracked this run… even a hair below the 0.303 the climb started from.

What pulled it down?

The same thing weighing on price: geopolitical jitters and steady fund outflows. Risk appetite drained out of the market, and BTC Risk drained right alongside it.

But low readings here aren't the warning sign - they're the opposite. At 0.300 we're sitting deep below the 0.5 midpoint, back in the zone that's historically rewarded patient buyers rather than punished them.

So the discount phase isn't behind us after all. The market just handed it right back. 📊

Humanity Protocol Loses $36M After Private Keys 'Compromised,' Token Crashes 73%. The decentralized identity protocol said a compromised employee laptop let attackers seize bridge controls, drain funds, and mint tokens at will.

Crypto tax bills a work-in-progress as U.S. House lawmakers pose concerns. U.S. lawmakers reviewed draft crypto tax bills covering reporting, small payments, staking, mining, and digital-asset tax treatment.

Over 200 crypto firms push Senate to pass CLARITY Act. Industry groups are urging Senate leaders to bring market-structure legislation to the floor before the midterm calendar narrows the window.

UK financial regulator moves to allow mutual funds 10% exposure to crypto ETNs. The FCA proposed allowing some investment schemes to hold limited crypto ETN exposure, widening regulated access without making it a lead-level U.S. story.

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: Trade tokens directly through smart contracts without a traditional exchange operator. 🥳

A DEX lets users swap assets through on-chain rules and liquidity pools or order books. The trade still carries risk, but it doesn't rely on the same centralised exchange custody model.

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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.