Bitcoin Hovers Near $64,000 While Coldcard Losses Top $116M

Bitcoin is holding near $64,000 after a week marked by a $116 million Coldcard wallet hack, renewed Strategy selling, and a stalled Clarity Act. Despite the hostile news cycle, the cryptocurrency has refused to break, trading in a narrow range.

The Coldcard exploit remains the week’s most significant story. A firmware bug dating to March 2021 caused certain devices from Canadian manufacturer Coinkite to generate recovery seeds with roughly 40 bits of entropy instead of 128, leaving long-term holders exposed to brute-force attacks. The attack is still ongoing, with a fourth wave moving 388.9 BTC (approximately $29 million) in a single evening. Developer James O’Beirne launched a live dashboard tracking the theft, seeding the network with tripwire UTXOs built on the broken default seeds. His control wallet with no added entropy was swept within an hour, confirming attackers are continuously scanning the vulnerable seed space. Coinkite has halted shipments, destroyed remaining inventory with the vulnerable firmware, and urged users to move funds immediately, warning that a firmware update alone does not eliminate the risk.

Meanwhile, Michael Saylor’s Strategy disclosed selling 1,638 BTC for about $104.7 million, its third sale this year. Wallets linked to the company moved another 1,030 BTC on Wednesday, fueling fears of a fourth sale. The company still has $5 billion in authorized sales remaining.

In Washington, the Clarity Act’s cloture vote is expected to fail after Senate Democrats raised ethical concerns. Polymarket odds on the bill becoming law in 2026 slipped from 27% to 23%.

Despite these headwinds, bitcoin has found support near $64,000. Analysts point to the production cost, currently at $54,000 according to Capriole Investments founder Charles Edwards, with the electrical component at $40,000. Historically, prices have dipped below production cost in every cycle bottom, providing a well-defined floor. Exchange inflows spiked as frightened Coldcard users moved coins, adding to short-term pressure. A failed Clarity vote could deliver another headline blow before the August recess, potentially threatening bitcoin’s price stability.

Source: https://news.bitcoin.com/featured/bitcoin-64k-coldcard-losses-114m/