Bitcoin Whales Absorb Retail Selling Pressure Amid Coldcard Fallout
Bitcoin's recent price action has been telling two distinct stories, one of concern among retail holders and another of accumulation by larger investors. The Coldcard security incident, which exposed wallets to potential theft, appears to have weakened confidence among smaller wallet owners. However, this selling pressure was quietly absorbed by whale wallets, which accumulated 19,610 BTC in just a few days.
This accumulation is evident from on-chain data provided by Santiment, which shows that wallets holding between 10 and 10,000 BTC added to their holdings, while smaller wallets reduced theirs. The timing of this accumulation coincides with the fallout surrounding the Coldcard firmware entropy flaw, which has resulted in estimated losses exceeding $87 million.
The security incident has not only led to direct financial losses but also raised concerns about self-custody among users who were not directly affected. According to Santiment, the decline in confidence triggered a broader wave of retail selling, while larger wallets continued accumulating during the market shakeout.