Bitcoin Climbs Toward $64K as Coldcard Fears Fade and Strategy Sales Lose Impact

Bitcoin moved higher as market anxiety eased after the recent Coldcard wallet exploit and Strategy’s bitcoin sales, although overall investor sentiment remained stuck in “extreme fear.”

Bitcoin (BTC) gained 1.6% over the past 24 hours, reaching a session high of $64,160 before pulling back slightly. The recovery came after a sell-off triggered by a security breach affecting Coldcard wallets and fresh bitcoin selling from Strategy, the largest corporate holder of BTC.

Researchers tracking the Coldcard incident said approximately 1,816 BTC, worth around $114 million, had been drained from more than 5,200 wallet addresses since July 30. The attackers exploited a vulnerability linked to Coldcard wallet firmware.

Adding to market pressure, Strategy (MSTR) sold 1,638 BTC between July 27 and Aug. 2 at an average price of $63,957 per coin. It marked the company’s third bitcoin sale of the year and came well below its average acquisition cost of $75,419. The firm said proceeds were used to support preferred stock dividends and buybacks for its STRC shares.

Market sentiment remained weak, with the Crypto Fear & Greed Index falling into “extreme fear” territory at 25. Spot bitcoin ETFs recorded $61.5 million in outflows last week, though they attracted $170 million in inflows on the previous day. Ether ETFs posted $27.4 million in weekly inflows, followed by $11.4 million in outflows on Monday.

The Japanese yen also came under pressure, declining nearly 4% after U.S. Treasury Secretary Scott Bessent confirmed coordinated currency intervention efforts between the U.S. and Japan. The move revived comparisons to the August 2024 carry-trade unwind, though bitcoin’s 52-week correlation with the USD/JPY pair at -0.90 suggests dollar strength remains the larger market risk.

Derivatives Market Positioning

ATOM futures show heavy positioning:
Cosmos’ ATOM surged nearly 9% over the past day, making it one of the strongest-performing tokens. However, the rally has been accompanied by elevated futures activity, with open interest approaching a record 80 million tokens.

ATOM traders remain cautious:
Both annualized perpetual funding rates and 24-hour open-interest-adjusted cumulative volume delta (CVD) remain negative. This suggests traders are building short positions or hedging against further declines. Despite a 12% gain over three days, ATOM is still recovering from historically low levels and remains within a broader downtrend.

ADA futures reach record interest:
Cardano’s ADA has also attracted significant attention, with futures open interest reaching an all-time high of 2.79 billion coins. ADA’s 24-hour CVD is the strongest among major cryptocurrencies, indicating aggressive buying through market orders. Slightly positive funding rates further support the strength of the current rally.

Bitcoin and Ethereum futures remain subdued:
Bitcoin’s recent increase in open interest proved temporary, with OI returning to around 740,000 BTC, a level it has maintained in recent weeks. Ethereum futures showed a similarly muted trend.

Altcoin signals remain mixed:
Market activity across the top 20 altcoins is uneven. ADA, TRX, ZEC, AVAX, and ETH are seeing positive CVD trends, while several other major tokens continue to show weaker demand.

Bitcoin Volatility and Options Market

Bitcoin’s 30-day implied volatility index (BVIV) has fallen near 36%, its lowest level since May 31. The decline indicates calmer market conditions and limited demand for protective options. However, volatility remains below its longer-term averages, creating the possibility of a rebound as volatility typically returns toward historical norms.

In the options market, trading activity on Deribit is concentrated around the $60,000 put level and $70,000 and $72,000 call strikes. This suggests that the $60,000–$72,000 range could become a key zone where larger price movements and increased volatility emerge.

For bitcoin, the $70,000 call was the most actively traded option over the past 24 hours, while Ethereum traders focused most heavily on the $1,900 call.

Token Market Update

Cardano’s ADA climbed to $0.195, its highest level since July 4, with its market capitalization rising 24% over the past week, according to Santiment data. The move made ADA one of the few major cryptocurrencies showing strong momentum during a largely mixed altcoin market.

Interestingly, the rally has occurred while the number of ADA holders has declined. Cardano currently has around 7,070 fewer wallets holding ADA than it did two months ago, suggesting that the price increase has been driven by stronger buyers absorbing supply rather than renewed retail participation.

The trend presents both opportunities and risks. A smaller group of committed buyers supporting prices may indicate strong conviction, but it also means the rally could be vulnerable if demand fails to broaden. A return of retail participation and rising wallet numbers would strengthen the bullish case, while continued price gains alongside declining holders could indicate a narrower market base.

The recent ADA recovery also has fundamental support beyond market speculation. Cardano’s ecosystem continues to advance through developments such as Leios testing, Hydra scaling improvements, Mithril upgrades, Pyth price-feed integration, and new Catalyst funding initiatives for developers. These upgrades provide additional support for the rally beyond short-term market sentiment.

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