Crypto Markets Decline Amidst $38 Million Bitcoin Heist and Disappointing Coinbase Results
A major security breach in multiple Coldcard hardware wallets has drained Bitcoin worth around $38 million. The exploit allowed attackers to target approximately 500 single-signature wallets, all within a 30-minute time frame. According to reports, the vulnerability was caused by devices skipping their built-in hardware randomness generator, opting for a more predictable key generation method instead.
The incident has contributed significantly to the negative sentiment in crypto markets. This is evident from the decline in overall market capitalization, which dropped 0.65 percent overnight to $2.19 trillion. Bitcoin's trading volume also saw an 8-percent dip during this period.
Another factor contributing to the bearish sentiment is Coinbase Global, Inc.'s disappointing second-quarter results. The leading crypto platform has reported its third consecutive quarterly loss due to decreased crypto trading activity. However, Bank of Japan's decision to maintain its short-term policy rate at 1 percent has somewhat alleviated market concerns.
Market leader Bitcoin currently trades around $63,866.15, a 49-percent decrease from its all-time high of $126,198.07 recorded on October 7, 2025. Ethereum (ETH) is trading 62 percent below its peak price of $4,953.73, reached on August 25, 2025.