GM and welcome to The Crypto Nutshell! 🫶 🥜 

The crypto newsletter that's more secure than waking up as a cybernetic organism tasked with protecting humanity... 🤖💪 

Today, we’ll discuss:

• Recapping the last 24 hours in the world of crypto 🌏

• A trading strategy to 4x your Bitcoin returns!? 🤑

• Why is Bitcoin being moved off of exchanges? 🤷

• And more…

MARKET WATCH ⚖️

BTC Dominance is currently at 49.14% and the current crypto market cap is $1.05T ▼0.35%

Biggest Winners of The Day 🤑

• Shiba Inu (SHIB) ▲3.64%

• BNB (BNB) ▲2.55%

• TRON (TRX) ▲2.03%

Biggest Losers of The Day 😭

• Litecoin (LTC) ▼2.36%

• Solana (SOL) ▼1.42%

• Ethereum (ETH) ▼1.32%

Only the top 20 coins measured by market cap feature in this section

All price data as of 7:30am ET

CHINESE OFFICIAL JAILED FOR LIFE 🚔

JUST IN: Chinese official faces life in prison for… mining BTC? (amongst other charges)

Xiao Yi, a Chinese government official has been sentenced to life in prison for illegitimate business operations related to running a 2.4 billion Chinese yuan ($329 million) Bitcoin mining enterprise. 😳 

It turns out, Yi was providing financial and electricity subsidies to Jiumu Group Genesis Technology, a Fuzhou-based company that operated more than 160,000 Bitcoin mining machines. According to prosecutors, Yi “covered up” the mining operation by fabricating statistical reports on electricity usage.

Here’s the real crazy part though.

The prosecution found that, between 2017 and 2020, Jiumu Group was responsible for 10% of the city of Fuzhou’s electricity consumption.

This isn’t just some small town. This city has a population of ~7.74 million… 😱

Now, he’s heading to prison for life. All for using 10% of his total cities electricity to mine Bitcoin over three years.

Too harsh a sentence? Let us know what you think in today’s poll at the end of the newsletter. 👇

EXPERT OF THE DAY 💰

Well-known on-chain expert Plan B is confident that he has found a particular strategy that outperforms Bitcoin by 4x. 😯 

The mastermind behind the esteemed Stock2Flow Bitcoin valuation model, released a video covering this strategy which he's dubbed: S2F Trading Rule. 

The rule is so simple - it’s borderline ridiculous whilst at the same time genius. 👨‍🔬 

It involves 2 steps:

Step 1: 6 months before the Bitcoin halving, enter the market and buy Bitcoin.

Reason: Historically, 6 months before every halving, Bitcoin has a final dip. Meaning it’s an ideal point to enter the market. 📉

Step 2: Hold onto your Bitcoin position until 18 months after the halving. Then, sell everything. 💰

Reason: By doing this, you completely avoid the crypto winter whilst still receiving the bulk of the gains. 📈

If you had followed this strategy up until now, you’d be out-performing bitcoin by 4x. Although we will have to wait and see if the rule continues to out-perform into the future, the first date to watch is almost here. 🕰

Historically we see a Bitcoin final dip / flush 6 months before the halving.

For the upcoming halving, this will fall between mid October - mid November. So only 2 months to go.

You know we’ll be keeping an eye on this date to see if the S2F Trading Rule is holding up. 👀 

Nutty’s takeaway: Although trading strategies like this are fascinating to unpack - one word of warning before you try to replicate it. Strategies & trading rules work perfectly up until they don’t. ❌

Although historically this rule has out-performed Bitcoin by 4x, there’s no guarantee that it will continue into the future.

If enough people are aware of this strategy, then inevitably investors are going to try and front-run it. This in turn will change the dynamics completely & invalidate the strategy.

Regardless, strategies such as this are fun to observe and we’ll keep you updated on this one as it plays out. 💯

TOGETHER WITH LEDGER 🪙

ON CHAIN DATA DIVE 📊

Yesterday we took a brief look at how the total balance of long-term holders recently hit a new all time high of ~14.63 million Bitcoin. Check it out. Some interesting stats in there.

Today we’ll be taking a look at the state of long-term holders but from a different angle. We’ll be diving into the Total Bitcoin Balance Held On Exchanges.

It’s safe to assume that the coins leaving exchanges are going into the hands of long-term holders. Why would short term holders take coins off of exchanges if they are looking to sell?

Let’s break this chart down:

• Exchange Balances peaked in March 2020 at 3.21 Million Bitcoin

• Exchange balances are currently at 2.27 Million Bitcoin

• This is the lowest Exchange Balances have been since March 2018

• From March 2020 Exchange Balances have decreased by 940,000 Bitcoin, this is 4.83% of the total Bitcoin supply

• And it’s only going lower…

From this chart, it’s looking like investors are increasingly preferring to take charge and hold their own digital assets, rather than keeping them on exchanges.

If you aren’t aware the safest way to store your Bitcoin is on a cold wallet such as a Ledger. Cold storage ensures that you aren’t at risk of losing your digital assets if something were to go wrong with exchanges, take the collapse of FTX as an example.

Nutty’s Takeaway: If you’re in Bitcoin for the long run then we highly suggest looking into a cold storage wallet.

You don’t want your investments to vanish due to the poor decisions of an exchange do you?

Remember the golden rule of crypto - Not Your Keys, Not Your Coins.

CRACKING CRYPTO 🥜

TRIVIA TIME ✍️

This altcoin is meant o be “silver to Bitcoin’s gold“.

• A) Dogecoin (DOGE)

• B) Ethereum (ETH)

• C) XRP (XRP)

• D) Litecoin (LTC)

Find out the answer at the bottom of this newsletter 😀

MEME CORNER 😂

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

Trivia Answer: D) Litecoin (LTC) 🎉

Charlie Lee’s goal for Litecoin was not to replace Bitcoin but for Litecoin to be “silver to Bitcoin’s gold“.

NUTCASE REVIEW OF THE DAY 🔍

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.