Bitcoin Rallies to $64,160 Amid Cold Wallet Hack and Strategy Sales

Bitcoin rose by 1.6% in the last 24 hours to reach as high as $64,160, its highest price since July 31. This rebound followed a sell-off due to an exploit that targeted a cold wallet over the weekend and bitcoin sales by Strategy (MSTR). The hack exploited a flaw in the Coldcard wallet's firmware and resulted in approximately 1,816 BTC ($114 million) being removed from more than 5,200 addresses since July 30.

Strategy sold 1,638 Bitcoin between July 27 and August 2 at an average price of $63,957. The company uses the proceeds to fund dividends and buybacks on its preferred stock, STRC. Meanwhile, the Crypto Fear & Greed Index has dropped to 'extreme fear' at 25.

The yen slumped nearly 4% after U.S. Treasury Secretary Scott Bessent confirmed the U.S. joined Japan in coordinated intervention. Bitcoin's 52-week correlation with the pair is minus 0.90, indicating dollar strength as a larger risk. In contrast to the weak spot market, derivatives positioning shows elevated activity in ATOM futures, which have seen nearly 9% gains in the past 24 hours.

However, record open interest (OI) perched at 80 million tokens indicates a growing bias for shorts or bearish plays, suggesting that the rally is being hedged. A similar trend is observed in Cardano's ADA, which has also seen significant spot price gains and record OI of 2.79 billion coins.