The Bank of Japan kept its key interest rate unchanged at 1%, while Governor Kazuo Ueda’s hawkish remarks had a limited market impact as traders had already factored in the possibility of an October rate increase.
“Worst hit in Bitcoin history”: Community reacts after Coldcard wallet vulnerability emerges
“This may be the most damaging event in Bitcoin’s history for the most experienced and properly secured Bitcoin users,” said Guy Swann. “This is not an exchange hack caused by stolen credentials. This involves thousands of people potentially having their private keys reconstructed without their knowledge.”
“This one feels different,” he added.
David Lawrence said those impacted had followed recommended security practices — learning about Bitcoin, taking precautions, moving funds away from traditional financial systems, and storing assets in hardware wallets — only to discover that their life savings could be gone.
He added that the incident could severely hurt the vision of billions of people eventually storing Bitcoin in cold wallets, saying the idea had suffered a major setback.
“No level of entropy or mathematical randomness can protect against the unknown challenges of the future,” said Charlie Shrem.
Jameson Lopp noted that security professionals often warn about potential risks that are ignored until a major incident occurs.
He said that over long periods, vulnerabilities and failures are inevitable, and anyone storing their life savings should take steps to reduce exposure to even unlikely risks.
Block’s Miles Suter suggested that the attacker appeared inexperienced and expressed surprise that more advanced attacks had not yet emerged after details of the vulnerability became public.
He added that users should remain highly cautious and treat the situation with urgency.
Bitcoin gives up recent gains despite Nasdaq strength
Bitcoin erased its previous day’s modest gains even as U.S. technology stocks continued their rally.
Despite Apple shares falling 8% after earnings, the Nasdaq remained positioned for further gains following Thursday’s nearly 3% surge.
Amazon helped offset Apple’s decline, jumping 11.6% after reporting stronger-than-expected earnings and raising its outlook.
Nasdaq 100 futures were up 1.2% about two hours before U.S. markets opened.
Crypto markets moved lower, with Bitcoin falling 1% over the previous 24 hours to around $63,900, while Ether declined 1.7% to approximately $1,884.
WTI crude oil climbed back toward the week’s peak, trading just below $85 per barrel, as investors appeared to build positions ahead of the weekend amid concerns over possible Middle East tensions.
Bond yields also moved higher, with the 30-year U.S. Treasury yield approaching a 19-year high of 5.22%.
Fed’s preferred inflation measure remains above target for 64 months
The Federal Reserve continues to emphasize its goal of reducing inflation to 2%, but recent data shows that progress remains limited.
Figures released Thursday showed that core PCE inflation, the Fed’s preferred gauge, increased 3.3% year over year in June. Although slightly lower than May’s 3.4% reading, inflation remains well above the central bank’s target.
The prolonged period of above-target inflation has kept bond yields elevated and weakened the outlook for risk assets, including cryptocurrencies.
Bitcoin holds near $64K as BOJ keeps rates steady
Bitcoin traded around $63,900 on Friday, remaining mostly unchanged after the Bank of Japan maintained its benchmark interest rate at 1% and Governor Kazuo Ueda’s hawkish comments failed to significantly move markets.
The yen reversed earlier gains during Ueda’s press conference, with the dollar-yen exchange rate returning close to its previous level as traders had already priced in a strong possibility of an October rate hike.
Ueda said inflation could rise above 2% later in the fiscal year and pointed to strong AI demand and a weaker yen as factors supporting higher prices — two themes that have influenced crypto market trends throughout the month.
A weaker yen has supported carry-trade activity, directing capital toward risk assets, while the AI investment cycle has remained a major market theme that Bitcoin has followed closely.
The broader crypto market remained calm. Ether traded near $1,885, while BNB continued to outperform major tokens, gaining 3.5% on the day and 4.4% over the week to around $591.
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