Coldcard Hack Sparks Price Decline for Bitcoin and Ether

A multimillion-dollar hack of the hardware wallet Coldcard has sent shockwaves through the crypto community, causing a decline in prices for Bitcoin and ether. The incident, which began on Monday, has raised questions over the safety of direct custody as a holding strategy.

The hack has led to numerous small holders complaining of losing long-term holdings and reassessing their faith in crypto. According to analysts at Marex, 'Worse for sentiment, it [the hack] has spooked holders into sending coins back to exchanges, the opposite of the self-custody trend crypto is built on.’

The price reaction of Bitcoin appears relatively restrained, with a 1.5% decline over 24 hours to $62,595. Ether has dropped nearly 2% to $1,842.