Coldcard Hack Weighs on Sentiment as Bitcoin Dips Below $63,000
Bitcoin dropped to below $63,000 at the start of the week as concerns over the Coldcard wallet hack overshadowed falling oil prices and Treasury yields. The move lower comes despite a more supportive macro backdrop, which typically would provide a boost for Bitcoin. Instead, crypto-specific concerns are dominating the price action.
The Coldcard incident has reportedly drained over $89 million in Bitcoin from more than 4,500 addresses, with losses reaching 1,367 BTC according to Galaxy Research. This has prompted users to move funds to new wallets or centralised exchanges as a precaution.
Smaller Bitcoin holders have moved almost 40,000 BTC in transactions of less than 1 BTC, the biggest daily move from this group since the FTX collapse in November 2022. This doesn't necessarily point to a major wave of selling but highlights growing security concerns and is weighing on sentiment.
Looking ahead, the US economic calendar is busy this week, culminating in Friday's non-farm payroll report. A strong print could revive expectations of a September rate hike, removing some of the macro support from lower yields and potentially adding another headwind for Bitcoin.