Bitcoin climbed back toward $64,000 as the market steadied after a weekend hack that hit Coldcard wallets and a fresh round of bitcoin sales by Strategy. Sentiment has not caught up with the recovery: the broader mood gauge still reads "extreme fear," even as options traders position around $70,000.
Bitcoin rose 1.6% over the last 24 hours to $63,691.85, climbing as high as $64,160 — its highest level since July 31 — before retreating. The rebound follows a selloff triggered by an exploit that hit a cold wallet over the weekend and bitcoin sales by the world's largest corporate holder.
Coldcard exploit and Strategy sales recede
Researchers tracking the wallet hack say roughly 1,816 BTC, about $114 million, was removed from more than 5,200 addresses since July 30, after an exploit hit a flaw in the Coldcard wallet's firmware.
Strategy added to the pressure. The company sold 1,638 bitcoin between July 27 and Aug. 2 at an average price of $63,957, its third sale of the year and below its $75,419 average cost. Strategy uses the proceeds to fund dividends and buybacks on its preferred stock, STRC.
Extreme fear persists despite ETF inflows
Sentiment lags the price move. The Crypto Fear & Greed Index has dropped to "extreme fear" at 25, even as bitcoin gained on the day.
Spot bitcoin ETFs saw $61.5 million outflows last week, while $170 million came in yesterday. Ether ETFs saw $27.4 million inflows last week, with another $11.4 million leaving on Monday.
Yen intervention raises a macro risk
The yen slumped almost 4% after Treasury Secretary Scott Bessent confirmed the U.S. joined Japan in coordinated intervention, reviving carry-trade comparisons to August 2024. Bitcoin's 52-week correlation with the yen sits at minus 0.90, however, pointing to dollar strength as the bigger risk to bitcoin than the carry trade itself.
Options traders position around $70,000
Bitcoin's 30-day implied volatility index, BVIV, has dipped to nearly 36%, its lowest since May 31, signaling calm rather than panic. Options activity on Deribit is concentrated in the $60,000 put and calls at the $70,000 and $72,000 strikes, and the $70,000 call is the most-traded bitcoin option of the past 24 hours. Bitcoin open interest dropped back to 740,000 BTC after briefly spiking a day earlier.
Source: CoinDesk
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