Key Insights Bitcoin price in focus as Coldcard wallet theft exposed weak seed randomness across several Coldcard models. Firmware updates secure new seeds but cannot repair existing affected
Bitcoin price traded near $62,600 after a sharp intraday decline, while a major Coldcard wallet theft raises fresh security concerns. The reported attack drained about 594 BTC, worth roughly $38 million, from around 500 wallets within about 25 minutes.
Researchers linked the losses to a Coldcard firmware flaw that weakened randomness during seed creation. The event has not caused a confirmed market-wide selloff. Still, it adds another pressure point while Bitcoin holds above the closely watched $60,000 level.
Current Bitcoin price data by CoinMarketCap shows the asset traded between roughly $62,400 and $65,300 during the session. That range shows the market was already volatile before the advisory broadened.
K33 Research highlighted the Coldcard wallet theft. Security teams then traced a coordinated series of Bitcoin transfers. Early analysis identified about 500 single-signature wallets, each holding more than 0.15 BTC. Many wallets had stayed inactive for years before the attacker moved their balances.
Coldcard Wallet Theft | Source: X The first sweep moved about 594 BTC through hundreds of transactions during a narrow three-block window. Roughly 562 BTC later reached one address, which had not moved the funds during the initial review.
The affected coins entered those wallets between 2021 and 2026, matching the suspected exposure period. Block researchers later identified 695 earlier transactions sharing the same on-chain fingerprint. Those transfers moved another 488.11 BTC.
If connected, the Coldcard wallet theft could involve about 1,082.59 BTC. Researchers described that higher total as preliminary and subject to further verification.
The Coldcard firmware flaw affected how devices created wallet seeds. Secure seeds require enough unpredictable data to prevent attackers from recreating private keys. Weak entropy narrows the possible combinations and makes automated guessing more practical.
Coinkite, the firm behind Coldcard, initially focused its warning on Mk3 devices using firmware versions 4.0.1 through 4.1.9. Its July 31 update expanded the advisory.
Seeds created on Mk4 and Mk5 before version 5.6.0 are also affected. Q seeds created before version 1.5.0Q face the same issue. Coinkite said newer models produced about 72 bits of entropy, below the expected 128 bits.
Exposure depends on firmware used during seed creation, not the device purchase date. Coinkite released fixed firmware for each affected model. However, installing an update does not repair an existing seed.
Users must create a new seed after updating, verify a receiving address, and move funds carefully. Coinkite recommends a small test transaction before transferring the remaining balance.
Bitcoin in Focus | Source: X Users who added at least 50 private, independent dice rolls during seed creation may have enough external entropy. Strong BIP-39 passphrases also add protection, although Coinkite still advises migration. A device PIN does not provide the same protection as a separate passphrase.
Bitcoin traded near $62,600 as of writing, CoinMarketCap data showed. That price stood about 3% below the previous close. The Bitcoin price stayed above $60,000 despite the Coldcard wallet theft and broader selling pressure.
The drain created direct losses for affected holders. However, no evidence confirms that the stolen coins caused the wider decline.
The $60,000 level now acts as the nearest major psychological support. A sustained move below it could bring the $58,000 area into focus. Bitcoin must first recover $64,000 to reduce immediate downside pressure.
However, this article is for informational purposes only and the price targets should not be considered financial or investment advice.
Meanwhile, the suspected Coldcard Wallet attacker’s consolidated funds remain important to track. A large transfer toward an exchange could create additional short-term supply concerns.
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