Bitcoin Active Addresses Soar Amid Coldcard Firmware Exploit Fallout

A recent surge in Bitcoin active addresses has reached an 8-month high after a Coldcard firmware exploit prompted users to migrate their funds to alternative custody. According to Glassnode, approximately 0.98 million daily active addresses were recorded on July 31, the highest count since December 2024.

This increase is attributed to 'fear-driven on-chain activity' as holders respond to the security vulnerability by moving seeds and funds to safer locations, rather than a change in market conviction. The analytics firm further emphasized that this reaction reflects an operational security response.

The incident, which involved attackers sweeping wallets generated on defective Coldcard firmware, has led to significant losses, with Galaxy Research estimating over $100 million in confirmed stolen Bitcoin, and potentially up to 2,055 BTC once suspected sweeps are included.