Bitcoin slid to around $63,600 on August 3, down 1% on the week, as a major exploit targeting Coldcard hardware wallets deepened market unease. Hackers drained nearly $40 million in a single wave, bringing the total stolen from affected devices to 1,367.05 BTC — roughly $88.6 million at current prices.
Coldcard exploit reaches $88.6 million
Alex Thorn, head of research at Galaxy Digital, flagged a fourth wave of attacks on Coldcard devices whose seed phrases were generated on certain firmware versions. He urged users to move funds immediately. The exploit pushed Bitcoin's positive-to-negative commentary ratio to its lowest level since Santiment began tracking the metric, the analytics firm reported. The breach underscores persistent risks even in hardware wallets, long considered the gold standard for cold storage.
ETF flows turn negative after July streak
Spot Bitcoin ETFs saw net inflows of nearly $200 million in the first week of July, but outflows dominated later in the month. That came after a bright spot: seven consecutive days of net inflows from July 14 to July 22 — the longest such streak since April. The reversal suggests institutional appetite cooled as the Coldcard news and broader market jitters took hold.
Strategy trims holdings, boosts cash
Strategy (formerly MicroStrategy) sold 1,637 BTC for roughly $105 million between July 27 and August 2, trimming its total stash from 843,775 to 842,138 BTC. The company also raised $250 million in new USD reserves and repurchased $81 million of its own shares. The timing isn't great — selling into a dip — but the move gives Strategy more dry powder for future buys or debt management.
August's track record for Bitcoin
History isn't on Bitcoin's side this month. August has ended in the red 9 out of the last 13 years, making it one of the worst-performing months for the asset. Combined with the Coldcard fallout and mixed ETF flows, traders are bracing for more downside. The next test: whether the $60,000 support level holds as the exploit's full impact ripples through the market.
