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GM to all of you nutcases. It’s Crypto Nutshell #732 breakin’ down moves… ✍️🥜
We're the crypto newsletter that's more thrilling than racing to steal the Declaration of Independence before the bad guys do... 🗽🔎
What we’ve cooked up for you today…
💪 Strength
🚂 Nothing stops this train
📉 Supply squeeze
💰 And more…
Prices as at 3:35am ET
STRENGTH 💪
BREAKING: Bitcoin’s October Slowdown Masks Strength, Analysts Predict Catch-Up With Gold
Last Friday’s $20 billion wipeout was one of the largest liquidation events in crypto history.
Bitcoin plunged 13% in an hour. Altcoins like ATOM briefly flatlined. $65 billion in open interest vanished.
But here’s the twist: what looked like chaos was actually a reset.
According to K33 Research, the violent unwind purged months of excessive leverage - leaving behind a “constructively bullish” setup.
Vetle Lunde, K33’s head of research, had this to say:
“Historically, such deleveraging phases lead to short-term stagnation and cautious trading, but they also tend to mark exhaustion points, creating fertile ground for longer-term recovery once stability returns.”
In other words - the storm might’ve cleared the skies.
Bitwise CIO Matt Hougan agrees.
He called the sell-off “a blip” adding that crypto “got a passing grade.”
“Many DeFi platforms performed flawlessly… Uniswap, Hyperliquid, Aave and others reported no losses… Crypto did as well or better than traditional markets would have done in the same situation.”
By Monday, Bitcoin had already rebounded near $115K. Liquidity recovered. DeFi held strong. No major institutions failed.
And now, analysts say the foundation for the next leg higher is in place.
Bitcoin remains steady near $111K - flat on the week, but firm in structure.
Gold might be setting records, but as Lekker Capital’s Quinn Thompson said at London’s Digital Asset Summit:
“We will catch up to gold. It will start very soon and the move that is about to come in bitcoin and crypto broadly will resemble a November 2024 and an October 2023 type of move.”
21Shares’ Matt Mena echoed the same:
“ETF inflows and a more dovish policy outlook continue to provide a floor. With leverage flushed and easing on deck, Bitcoin could climb to $150K before year-end.”
Behind the scenes, Fed Chair Jerome Powell has acknowledged “softness” in the labor market - a signal rate cuts are still on the table.
So yes - last week’s liquidation was brutal. But it was also cleansing.
The weak hands are gone. The structure’s reset. And with easing ahead, the macro tailwinds haven’t changed.
If anything, they’ve strengthened. 🚀
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NOTHING STOPS THIS TRAIN 🚂
In crypto, it’s easy to get lost in the noise.
Especially with the flash crash this last weekend - charts flashing red, headlines screaming “record liquidation.”
But Bitwise CEO, Hunter Horsley says: zoom out for a second.
This weekend marked one of the largest liquidation events in Bitcoin’s history.
And after it all? Bitcoin only dropped ~15%… settling at ~$112,000.
A few years ago, like in 2020, crashes like this sent Bitcoin to $5,000.
Now, a “major selloff” leaves it well over six figures.
That’s not weakness.
That’s progress.
As Hunter Horsley, it:
He’s right.
Just think about how crazy that is.
The biggest liquidation event in crypto history.
And it sent Bitcoin to… $112,000?
The day-to-day of crypto can feel chaotic, but the long-term trajectory couldn’t be clearer:
Each cycle, the floor rises.
Each correction gets shallower.
And each recovery gets faster.
Big picture - nothing stops this train. 🚂
SUPPLY SQUEEZE 📉
Let’s dive deeper into 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.
35,712,390 ETH is now locked - up 1.77M ETH this year, worth around $7.2B.
That’s 29.46% of all Ethereum, nearly a third of supply off the market.
This isn’t noise. It’s a slow-motion supply squeeze.
More ETH is disappearing into staking contracts every week while liquid supply keeps shrinking.
And when demand meets a thinning float…
ETH doesn’t climb.
It surges. 🚀
CRACKING CRYPTO 🥜
Ethereum to onboard 1.4B new users as Chinese AliPay megacorp launches own L2. Ant Group’s Jovay aims to redefine digital finance by bringing real-world assets on-chain as it launches an Ethereum-based Layer-2 network.
Eric Trump Confirms Real Estate Tokenization Plans With WLFI. The World Liberty Financial co-founder said in a CoinDesk TV interview he is currently working on tokenizing a real estate project tied to a building under development.
Coinbase invests in Indian crypto exchange CoinDCX at $2.45B valuation. As part of its expansion into India and the Middle East, Coinbase reinvested in Indian crypto platform CoinDCX, pushing its valuation to $2.45 billion.
SEC Chair Atkins charts pro-innovation path for crypto and tokenization regulation. SEC Chair Paul Atkins is looking for cryptocurrency innovation to thrive as the agency forges its path in prioritizing the industry.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
p.s. all completely FREE (one click subscribe link)
Raremints (link) - Daily crypto news
Bitcoin Breakdown (link) - Daily Bitcoin news
Techpresso (link) - Daily tech news and insights
The Hustle (link) - Get Smarter on Business and Tech
Your Next Breakthrough (link) - Personal growth with Mark Manson
The Neuron (link) - AI trends and tools to keep you ahead
CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
What is collateralization ratio in platforms like MakerDAO?
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: The required value of collateral vs. loan size 🥳
The collateralization ratio defines how much crypto must be locked to back a stablecoin loan. 💵
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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.