Coldcard Crisis Spurs Bitcoin Fleece to Exchanges
The recent security vulnerability in Coldcard hardware wallets has caused an unexpected shift in investor behavior. Unlike traditional reactions to security crises, investors are moving their Bitcoin holdings from personal wallets to centralized exchanges.
This reversal of habit is evident in the data, with daily transfers of smaller amounts reaching a 6-month high of 7,300 BTC on July 31. The number of active addresses also surged to nearly the 1 million mark, recording the highest level since December 2024.
The majority of this growth stems from addresses sending assets to exchanges, according to CryptoQuant data. Experts note that a large portion of these transfers is due to investors seeking refuge in exchange platforms to avoid hardware wallet risks.