Coldcard Wallet Exploit Weighs Heavily on Bitcoin Price

Bitcoin's price fell back below $63,000 on Monday as traders reacted to ongoing fallout from an exploit linked to Coldcard wallets. The cryptocurrency slipped from a Sunday peak of $63,600 to around $62,800 by late morning trading.

The latest slide comes after a bruising week in which Bitcoin has dropped about 4%, underperforming traditional assets despite what would typically be a supportive backdrop.

On-chain data suggests that nearly $89 million has already been drained from affected addresses since the exploit was first reported. The attacker has targeted large balances and smaller accounts worth only a few thousand dollars each, with the average value per wallet dropping sharply in later waves of the theft.

The incident has also had an impact on institutional flows, with bitcoin funds seeing net outflows while ether-based investment funds attracted modest inflows on Friday. This divergence suggests that some professional money is either rotating away from direct Bitcoin exposure or stepping to the sidelines until the dust settles.