GM. Crypto Nutshell comin’ at ya! 🫶 🥜 

We’re the crypto newsletter that's more unpredictable than a chemistry teacher turned criminal mastermind... ⚗️🔬 

Today, we’ll discuss:

• Will the ghost of FTX crash Crypto markets? 👻 

• The real 4 year crypto cycle 💸 

• Ethereum Merge, 365 days later… ⏰ 

• And more…

MARKET WATCH ⚖️

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

FTX IS BACK TO DUMP THEIR CRYPTO? 😲

JUST IN: FTX to sell $3.4 billion in Solana, Bitcoin and other tokens as judge approves the sale of recovered assets.

FTX customers are set to receive payments from the now bankrupt exchange.

That means they need to sell their $3.4 billion in crypto for U.S dollars. *gulp*

Time to panic? 😳 

No, not really - FTX are not allowed to dump their crypto into the open market all at once. The ruling has allowed them to sell up to $200 million in assets every week. They’re also required to give 10 days notice to the US Department of Justice.

Additionally, it has been agreed to keep crypto sales private to prevent market impact on prices. They can’t dump their holdings on the open market.

And for all you Solana holders out there, most of FTX’s stash is staked, meaning it’s locked away and cannot be accessed for 2+ years.

So whoever buys these tokens is effectively buying the right to sell them at a later date.

So unlucky SBF - you won’t get one final laugh from your prison cell. ⛓️ 👮

THE 4 YEAR STIMULUS CYCLE 💸

Debt is going up forever. The dollar is going down forever. Bitcoin is heading towards the greatest supply shock it has EVER seen in its history.

That’s the message out from Dylan Leclair.

If you haven’t heard of him before, Dylan LeClair is a well known Bitcoin and on-chain expert.

Dylan did a keynote speech at the 2023 Baltic Honey Badger conference and his message was clear:

Buy up as much Bitcoin as you can before BlackRock and the other big institutional players get in.

Within the keynote, Dylan broke down what he believes is the real driver of the Bitcoin price. It’s not the Bitcoin halving, but the government debt cycle and money printing. 🖨️

The government is on a loose 4 year cadence of monetary stimulus. This lines up with the 4 year Bitcoin halving cycle.

Dylan argues that it’s actually the stimulus cycle that's driving Bitcoin bull-runs. 🐂

When you look at the growth in the Global M2 money supply and the price of Bitcoin… the correlation is clear. 

But what does this mean for the future of Bitcoin? 🤷‍♂️

Well hypothetically speaking, if we knew how much money & debt the U.S government were going to create, we could project how much higher Bitcoin will go.

If only we had a way… 🔮 

Wait a second! The U.S Government literally tells us 👀

Here’s what they’re projecting:

Keep in mind, these are projections put out by the U.S government. Meaning in all likelihood they are being conservative. Yet even with their conservative estimates, that’s a huge amount of debt and money printing. 😳 

Which leads to LeClair’s conclusion:

Debt is going up forever. The dollar is going down forever.

Buy Bitcoin.

ETHEREUM MERGE - ONE YEAR LATER 📅

Did you know that it’s been one year since the Ethereum merge? ⏰ 

Let’s check in and take a look at how the merge impacted the Ethereum Network.

In one sentence, the merge transitioned Ethereum from a mining-based proof-of-work blockchain to a more energy efficient proof-of-stake system. If you’re still unsure what the merge was, give this short video a watch.

Supply

Since the merge, Ethereum has become deflationary with the circulating supply being reduced by 0.248% each year.

• Burned: 981,787 ETH (permanently removed from the supply) 🔥

• Issued: 682,184 ETH (newly created ETH) 🎁

• Supply change: -299,603 📉

Staking

Staking is the process of locking up your ETH in order to contribute to the security of the blockchain and earn rewards. Still unsure? Watch this short video.

• 29,854,226 ETH has been staked which is ~24.83% of total supply

• Rate of ETH being staked accelerated in April 2023 due to the Shanghai upgrade which allowed stakers to withdraw ETH at any time, no longer bound to set staking time frames.

Energy Use

One of the big aims of the merge was to significantly reduce the amount of energy the Ethereum blockchain was using. Safe to say they crushed this goal. Since the merge, Ethereum’s energy consumption has dropped by more than 99.9%.

Price

In a nutshell, ever since the merge, things look to be overwhelmingly positive for Ethereum. The network has become deflationary with huge amounts of ETH being burned. 🔥 

On top of this, the amount of ETH being staked has accelerated and Ethereum energy consumption has fallen off a cliff. (that chart is seriously nuts… 😉)

So how has the price reacted?

Somewhat disappointingly, the price is pretty much exactly where it was before the merge.

Ethereum holders had high hopes that the merge would be explosive for price. However a poor macro environment & black swan events like the collapse of FTX have definitely played a role in this “lackluster” price performance.

Bottom line: The price may not have exploded like many thought it would, but one thing is for sure - the fundamentals of Ethereum have never been better.

We see a bright future ahead for Ethereum. 🔮

CRACKING CRYPTO 🥜

CAN YOU CRACK THIS NUT? ✍️

Approximately, what is Bitcoin’s current market cap?

• A) $500 Million

• B) $1 Trillion

• C) $516 Billion

• D) $856 Billion

Find out the answer at the bottom of “Meme Corner” below 😀

MEME CORNER 😂

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

Trivia Answer: C) $516 Billion 🥳 

At the time of writing Bitcoin’s current market cap is ~$519 Billion.

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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.