Coldcard exploit sparks Bitcoin flight, ‘bullish’ crypto consolidation: Hodler’s Digest, August 2
The “sickening” loss of $90 million of Bitcoin from cold storage weighs heavily on sentiment, as the Clarity Act stalls with just five days left to hold a Senate vote.
A recent exploit targeting Coldcard hardware wallets resulted in an estimated loss of 1,367 Bitcoin, valued at $88.6 million, affecting 4,585 addresses over the weekend. The security flaw stems from an improperly generated seed process, lacking a true random number generator. The incident comes amid a broader consolidation in the cryptocurrency market, with small holders rushing to centralized exchanges and alternative custody methods to protect their assets.
Bitcoin transfers below one BTC reached a five-year high, with 39,600 BTC moved in a single day, just 300 BTC short of the 39,900 BTC transferred in November 2022. Senate votes on the Clarity Act, aimed at regulating cryptocurrency, face uncertain prospects as supporters and critics clash over its provisions and enforcement. Industry experts predict a consolidation phase for the crypto sector, with major protocols like Hyperliquid and Pump.fun dominating revenue streams, leading to potential mergers, bankruptcies, and layoffs.
The 2026 FIFA World Cup boosted blockchain-based prediction market activity and digital collectible trades, amassing $20 billion in volume and 400,000 participant wallets. Bitcoin, Ether, and XRP are down 3%, 3.5%, and 2.3% respectively, while the total crypto market cap sits at $2.18 trillion. Grayscale notes that Bitcoin's price may have bottomed earlier than the usual four-year cycle, potentially signaling a bullish trend for the crypto market.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
