Bitcoin Dips Below $63,000 as $90M Cold Wallet Hack Rattles Investors

Bitcoin's price fell below $63,000 on Monday, extending weekend losses as investors reacted to a high-profile security breach involving a popular hardware wallet and disappointing quarterly results from key industry players. The leading cryptocurrency dropped 1% to $62,829.4 by 02:04 ET, according to Investing.com data.

Major Hardware Wallet Breach Shakes Confidence

Market sentiment was severely damaged by news that Coinkite Inc.'s Coldcard wallets, a brand of "cold" storage hardware, had been compromised. According to data from Galaxy Research, hackers have siphoned nearly $90 million in Bitcoin from over 4,500 wallets.

The development is particularly concerning for the market, as cold wallets are designed to be offline and are widely considered one of the most secure methods for storing digital assets. The source reported that a flaw in the devices made them vulnerable to remote access, undermining investor trust in a cornerstone of crypto security.

Weak Earnings from Crypto Bellwethers Add to Gloom

Adding to the negative pressure were weak second-quarter earnings from publicly traded crypto companies last week. Strategy Inc. (NASDAQ:MSTR) reported a larger-than-expected loss, amplifying concerns over the stability of its substantial Bitcoin holdings, especially as it has recently sold some assets to cover obligations.

Ad

Similarly, Coinbase Global Inc. (NASDAQ:COIN), the largest U.S. crypto exchange, also posted weaker-than-expected results. The company cited a sharp decline in transaction volumes, reflecting a prolonged exodus of investor interest from the crypto markets throughout 2026.

Broader Market Impact

The negative sentiment cascaded across the broader cryptocurrency market, with most major altcoins following Bitcoin's decline. The widespread losses occurred despite potentially positive geopolitical developments, as reports of renewed U.S.-Iran negotiations failed to provide support for risk assets like cryptocurrencies.

Other notable digital assets also traded lower:

• Ether (ETH) fell 1.2% to $1,856.74.
• XRP declined by 1.1%.
• Solana (SOL) and Cardano (ADA) were down 1.0% and 1.4%, respectively.