Bitcoin Whales Absorb Retail Selling Pressure Amid Coldcard Security Scare
Bitcoin is facing two different stories as larger investors quietly accumulate thousands of BTC while retail holders sell amid growing concerns over hardware wallet security. According to on-chain data from Santiment, wallets holding 10 to 10,000 BTC added 19,610 Bitcoin in just a few days, representing a 0.14% increase in holdings since July 29.
The accumulation spans the broader 10-10K BTC wallet cohort, suggesting larger market participants have been absorbing coins as retail confidence weakened. This comes after a Coldcard firmware entropy flaw exposed affected wallets to potential theft, with estimated losses exceeding 1,360 BTC, worth approximately $87 million at current prices.
The security incident has triggered more than direct financial losses, with fear spreading quickly across the market, raising concerns about self-custody even among users who weren’t directly affected. As a result, retail holders have been selling, while larger wallets continued accumulating during the market shakeout.