Bitcoin Tumbles Below $63K as Coldcard Hack and ETF Outflows Weigh

Bitcoin's price has dropped below $63,000 due to several factors, including a hack of Coldcard hardware wallets and outflows from spot Bitcoin exchange-traded funds (ETFs). On August 3, the cryptocurrency fell by 1.22% to $62,726, trading below all four moving averages with a relative strength index (RSI) of 44.32, indicating weakening momentum.

The hack, which occurred on July 30, allowed attackers to drain an estimated $89 million in Bitcoin from over 1,200 wallets in just 41 minutes. The flaw was in the Coldcard firmware, not the Bitcoin protocol itself. Coinkite has released a firmware patch, but users must generate a new seed phrase and move their funds to a new wallet.

Additionally, spot Bitcoin ETFs recorded a $265.37 million daily net outflow on July 31, marking the first negative week in a month. This comes after three consecutive weeks of net inflows, which brought in a total of $197.40 million, $75.67 million, and $33.79 million respectively.

Analysts warn that the exploit has weighed heavily on sentiment, and if the $62,000 support fails to hold, Bitcoin's price could drop towards the range floor at $58,000.