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Bitcoin and Ether declined Monday while estimated losses linked to vulnerable Coldcard hardware wallets reached $114 million, extending an incident that began on July 30 into a fifth day.
Bitcoin fell 1.5% over 24 hours to about $62,595, while Ether dropped nearly 2% to $1,842. An index tracking major decentralized finance tokens declined 2.5%.
Fourth Suspected Sweep Lifts Estimated Losses to 1,816 BTC
Researchers identified a possible fourth wave of transactions involving addresses generated with affected Coldcard firmware. Transaction-pattern analysis placed the estimated total across four waves at 1,816 BTC from more than 5,200 addresses.
The incident began with a 41-minute sweep that moved 1,082.65 BTC from 1,196 addresses. Two additional waves raised confirmed observed losses to 1,367 BTC across 4,585 addresses before researchers detected the fourth suspected pattern Monday.
The latest estimate has not been confirmed through reports from every affected wallet owner. Coldcard manufacturer Coinkite has released fixed firmware for all affected models. Updating a device prevents vulnerable seed generation but cannot strengthen an existing seed, requiring affected users to create new seeds and transfer their Bitcoin to fresh addresses.
Short Sellers Account for 52% of Bitcoin Futures Volume
More than 52% of Bitcoin taker futures volume came from short sellers, while open interest increased to a one-month high of 772,000 BTC.
Funding rates remained positive at an annualized 4%, indicating that long-position holders were still paying shorts despite the price decline. Bitcoin’s 30-day implied volatility index held near 37% for a fourth consecutive day.
Options activity remained concentrated in call contracts with strike prices of $68,000 and $70,000. Those positions show demand for upside exposure but do not establish how traders expect the Coldcard incident to impact Bitcoin’s price.
Bitcoin Falls Below Its $63,770 200-Week Moving Average
Bitcoin traded below its approximately $63,770 200-week moving average Monday. The indicator tracks average weekly closing prices over roughly four years and had moved above the current market price.
The immediate unresolved issue remains the scale of the Coldcard incident. Researchers are continuing to determine whether the fourth transaction pattern represents additional stolen funds, while users with affected seeds have been instructed to migrate their Bitcoin.
