119,000 BTC dormant for over a year moved in three days following Coldcard vulnerability; only 10% reached exchanges, indicating wallet migration rather than selling pressure.
Macro & Markets ·
A Coldcard wallet vulnerability that resulted in the theft of roughly 594 BTC triggered a broader movement of dormant Bitcoin holdings. Within three days following the incident, approximately 119,000 BTC that had been inactive for more than a year changed hands, though only about 10% of that amount reached exchanges, indicating wallet consolidation and migration rather than sustained selling pressure.
The movement of dormant coins occurred amid a period of historically low Bitcoin volatility, according to Glassnode analysis, even as traditional markets—global equities and gold—reached record highs. During June, U.S. spot Bitcoin ETFs experienced net outflows of approximately 65,800 BTC, while implied volatility on the upside fell to a record low of near 23%.
The modest flow of reactivated coins to trading venues suggests that holders moving dormant balances were primarily reorganizing positions rather than exiting. Whether this dormancy break signals broader portfolio reallocation or represents a temporary response to the security incident remains unclear.