Bitcoin Slips Below $63,000 as Coldcard Wallet Hack, MicroStrategy Sale Rattle Markets

Bitcoin's price fell below the $63,000 level on Monday, extending weekend losses as the cryptocurrency market grappled with a high-profile security breach involving hardware wallet provider Coldcard and a significant sale by corporate holder MicroStrategy.

As of 9:32 AM ET, Bitcoin was trading down 0.8% at $62,650.4, according to Investing.com data. The negative sentiment overshadowed broader risk-on trends, with the crypto market showing little reaction to potentially positive geopolitical developments.

Cold Wallet Breach Shakes Investor Confidence

Market sentiment was severely impacted by news from Canadian crypto firm Coinkite Inc., which disclosed over the weekend that its Coldcard hardware wallets were compromised. The incident is a major blow to investor confidence, as hardware wallets, or "cold wallets," are traditionally considered the most secure method for storing digital assets due to being kept offline.

According to data from Galaxy Research, the breach has affected over 4,500 wallets, with thefts totaling nearly $90 million in Bitcoin as of Monday. The vulnerability in the Coldcard devices reportedly allowed for remote access, undermining the core security premise of cold storage.

MicroStrategy Sells Bitcoin Following Weak Earnings

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Adding to the selling pressure, business intelligence firm MicroStrategy (NASDAQ:MSTR) revealed in a Monday filing with the U.S. Securities and Exchange Commission (SEC) that it sold 1,638 bitcoins for approximately $104.7 million.

The sales occurred between July 27 and August 2 at an average price of $63,957 per coin. MicroStrategy stated the proceeds would be used for paying preferred stock dividends and share buybacks. After the sale, the company's holdings stand at 843,138 BTC.

This move follows weak second-quarter financial results from both MicroStrategy and crypto exchange Coinbase Global Inc (NASDAQ:COIN). MicroStrategy, known for its large Bitcoin treasury, reported a wider-than-expected loss and continues to hold its position at a significant unrealized loss, with an average purchase price of $75,419 per coin.

Broader Market Weakness

The broader crypto market followed Bitcoin's downward trend. Ethereum, the second-largest cryptocurrency, fell 0.9% to $1,839.74, while other major tokens including XRP and Solana also posted declines. The widespread weakness reflects a challenging environment for digital assets, which have faced waning investor interest in 2026 amid Bitcoin's sluggish performance and the growing popularity of AI-related investments.