Bitcoin Holds Above $63,000 Despite Hardware Wallet Losses and Corporate Sales

Bitcoin traded above $63,000 over the weekend, demonstrating stability despite headwinds from a significant hardware wallet security breach and continued selling pressure from a high-profile corporate holder.

As of Sunday, Bitcoin was trading at approximately $63,262, up 0.35% over the prior 24 hours, according to Investing.com data.

Hardware Wallet Flaw Sparks Concern

A critical vulnerability in Coldcard hardware wallets has resulted in escalating losses, creating concern among investors who self-custody their assets. Key details include:

• Total losses have reached 1,367 BTC, valued at nearly $89 million, according to a report from Galaxy Research.
• The exploit has occurred in three waves, with the latest draining approximately 208 BTC from over 1,900 addresses.
• The flaw stems from a March 2021 firmware release that used a predictable software randomizer to generate wallet seeds, allowing attackers to reproduce private keys offline.

This ongoing security issue highlights the persistent risks associated with digital asset storage and could temper investor confidence in certain self-custody solutions.

Corporate Selling Adds to Market Pressure

Ad

Adding to the market's supply-side pressure, Trump Media & Technology Group (NASDAQ:DJT) continued to liquidate its Bitcoin holdings. Blockchain analytics account Lookonchain reported that the company sold another 2,628 BTC for about $165 million.

Lookonchain estimates that Trump Media has now sold a total of 7,281 BTC from its initial purchase of 11,542 coins. The analytics firm projects the company's total realized and unrealized losses on its Bitcoin investment to be around $555 million.

Institutional Flows Provide Support

Counterbalancing these negative catalysts is the growing presence of institutional capital. After a period of sustained withdrawals, spot Bitcoin exchange-traded funds (ETFs) recently recorded more than $220 million in net inflows.

This trend suggests that while security vulnerabilities and corporate treasury sales can create near-term volatility, the increasing adoption by institutional players may be establishing a more stable, long-term source of demand for the asset.