Coldcard Crisis Sparks Bitcoin Hot Supply Surge
A recent crisis affecting Coldcard wallets has led to a doubling of Bitcoin's hot supply in just one week, according to onchain data.
Coldcard is a popular hardware wallet known for its security features and simplicity. However, the current crisis seems to have caused some users to transfer their BTC to exchanges or other custodial services, effectively moving them from 'cold' storage to 'hot' wallets.
The data shows that hot supply has increased by nearly 100% in just one week, with the total amount of Bitcoin held in hot wallets reaching an all-time high. This sudden spike is being attributed to the Coldcard crisis, which appears to have been caused by a combination of factors, including user error and technical issues.
As the situation continues to unfold, it remains to be seen how this will impact the overall market. Some experts are warning that increased hot supply could lead to decreased security and an increased risk of hacking incidents.