Coldcard breach prompts 210,000 BTC outflow from long-term holders
A major security breach at Coldcard has triggered the largest one-week transfer of bitcoin from long-term holders (LTHs) since December 2024.
About 210,000 BTC moved out of these wallets, dropping LTH supply from just under 15 million BTC, close to an all-time high, to 14.7 million.
This is pretty unusual, especially since bitcoin is trading at $64,000, half its peak value last year.
Coldcard randomness flaw enabled $114 million theft
The Coldcard hack stemmed from weak randomness in affected Coldcard firmware, letting hackers reconstruct wallet recovery phrases and steal funds, with as much as $114 million lost across thousands of addresses.
Some of the decline could therefore reflect users transferring bitcoin into newly generated wallets or moving their assets to regulated custodians or spot bitcoin ETFs.
In fact, US bitcoin ETFs saw $754 million in inflows last week, showing people are now looking for more secure ways to store their crypto after the breach.