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What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: Tether’s USDT stability score cut to 'weak' level as S&P says reserves can’t absorb bitcoin drop

Here comes the Tether FUD again.

S&P Global Ratings has cut Tether’s USDT to the lowest score on its stability scale.

They now call its dollar peg “weak” and say the reserves are taking on more risk than before.

Here is what they are worried about:

More risk than buffer

Bitcoin now makes up about 5.6% of the assets backing USDT.

Tether’s own report shows about 3.9% extra reserves as a cushion.

S&P’s point is simple: if Bitcoin and other risky assets drop at the same time, USDT could become undercollateralized. In plain English, there might not be enough safe assets to fully back every token.

Higher-risk reserve mix

About 24% of total reserves are now in bitcoin, gold, loans, corporate bonds and other volatile assets. A year ago, that number was 17%.

The rest is mostly short term US Treasuries and cash-like assets, which S&P still sees as low risk.

Disclosure and structure gaps

S&P also flags how Tether is set up.

They say there is still no full audit, no detailed proof-of-reserves breakdown, and not enough clarity on which banks and custodians are holding the assets.

Tether is regulated in El Salvador under CNAD, which S&P says has looser reserve rules than the new US stablecoin laws.

As you’d expect, Tether is pushing back hard

CEO Paolo Ardoino called the report “misleading” and said old-school rating models do not understand “digitally native money.”

He also points to the scale of Tether’s balance sheet:

So the picture is split:

On one side, S&P sees a key dollar rail for crypto that is taking more risk and does not have the same protections as a regulated money market fund.

On the other side, Tether now looks a lot like a shadow central bank for crypto: huge Treasury and gold holdings, big profits, and a stablecoin that still dominates the market.

Both views can be true at the same time.

The risk profile is rising. The system is also bigger and more important than ever.

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For the last month, crypto has been chaos.

But Tom Lee just went on CNBC - and delivered what the host literally called one of the most important interviews of the year:

And Tom Lee delivered.

He thinks we’re basically at the bottom.

Here’s his exact line:

Why?

Because every crypto crash ends the same way:

And the real tell? MicroStrategy.

Lee says Strategy (formerly MicroStrategy) is the most important chart in crypto:

He explains the entire selloff has been amplified by hedging behavior:

But here’s where it gets interesting:

And on Bitcoin itself:

The takeaway:

Tom Lee rarely panics - and never without reason.

If this is the interview he’s openly saying Bitcoin and Strategy are bottoming…

You might want to listen.

According to Tom, the bottom is close - maybe already in. 🚀

Time for check in on Ethereum’s supply side dynamics.

To do that we’ll be focusing on the amount of Ethereum currently being staked.

Quick Note: Ethereum staking involves locking up ETH to support the blockchain’s security. In return, users earn rewards for staking.

If you’d like to learn more about staking, check out this article.

35.68 million ETH is now staked, up another 1.68 million ETH this year alone.

That is 29.41% of the entire supply, almost one third of Ethereum effectively pulled out of day-to-day circulation.

This is not a side statistic. It is a slow, grinding supply squeeze.

Week after week, more ETH disappears into staking contracts while the liquid float shrinks.

When real demand eventually slams into that kind of scarcity…

ETH does not just drift higher. It explodes. 🚀

Why Wall Street is blocking Strategy’s S&P 500 entry — even with its $56B Bitcoin empire. Strategy reshapes its corporate identity with Bitcoin-led ambitions, balancing asset coverage and equity volatility.

Crypto Bottoming Signs? FT Drops Trifecta of Bitcoin Gloom on Wednesday. As British taxes have been hiked once again, the U.K.-based publication took a victory lap on bitcoin's recent struggles.

CryptoQuant says big bitcoin holders increased deposits to exchanges as prices fell. The firm noted that exchange activity in ETH and altcoins also remained elevated, putting further downward pressure on prices.

Bolivia to integrate crypto, stablecoins into the financial system. The government of Bolivia wants to integrate crypto into the financial system to modernize the country's payments system and economy.

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

Trivia Answer: It timestamps events to speed up ordering of transactions  🥳

Proof of History creates a cryptographic timeline, helping Solana achieve extremely high throughput. ⚡

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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.