Bitcoin Price Falls as Coldcard Exploit Dampens Sentiment
Bitcoin price dived to $62,560 on Monday as investors react negatively to the Coldcard exploit, slightly underperforming a broadly weaker crypto market driven by market-wide risk-off sentiment.
A critical vulnerability in Coldcard hardware wallets led to the theft of approximately 1,367 BTC worth about $88.6 million from thousands of addresses.
The exploit, targeting a flawed random number generator in seed creation, prompted a “flight to safety,” with small holders moving funds to centralised exchanges.
Galaxy Research reported transfers under 1 BTC hit 39,600 BTC in a single day, nearing post-FTX bankruptcy levels.
The vulnerability is believed to be linked to ongoing attacks; as of Sunday, over 4,500 addresses were affected, and nearly $90 million in Bitcoin was stolen.
Crypto analysts said this is bearish for Bitcoin’s self-custody narrative in the short term, as it undermines trust in a key hardware wallet provider and may push users toward custodial solutions.
Based on trading data, the entire crypto market declined, with total market cap down 1.14% to $2.15 trillion. Bitcoin is acting as the market anchor; its direction is currently tied to overall crypto capital flows rather than unique news.
A sustained break in correlation, which would signal Bitcoin-specific alpha. While spot volume rose 15.87%, perpetual swap open interest jumped 27.46% to 377.89B, indicating new leverage entering the market. This leverage can amplify price moves in either direction.
The sell-off was accompanied by significant new positioning, increasing the risk of volatile squeezes if the trend reverses. Shifts in the average funding rate, currently at a neutral 0.0056425%.
The immediate trend is bearish, confirmed by higher volume on the down move. The key support to watch is the $62,000 level. If selling pressure persists and BTC breaks below $61,000, it could target the July low near $60,000.
A recovery needs to reclaim $63,500 to signal stabilisation. The path of least resistance is lower until key support holds or a positive macro catalyst emerges. £Bitcoin Price Falls as Coldcard Exploit Dampens Sentiment Solana Rises as South Korean KSNET Brings Solana Pay to Asia
