Bitcoin holds $65,000 as Coldcard losses mount and BIP-110 collapses

Metric	Value
BTC 48h range	$64,500-$65,250
Confirmed Coldcard theft	1,719 BTC (~$111M)
Potential total losses	2,300+ BTC (>$130M)
BIP-110 chain	Collapsed after split

Bitcoin held near $65,000 through the weekend, trading between $64,500 and $65,250 over 48 hours as losses from the Coldcard hardware wallet exploit mounted and the BIP-110 minority chain collapsed shortly after splitting from the main network. The largest cryptocurrency changed hands at $64,932 as of Sunday morning, Aug. 9, up 1.01 percent over 24 hours, with a market capitalization of $2.29 trillion and 56.85 percent dominance, according to CryptoRank data.

Galaxy Research's Alex Thorn, who examined 250 individual victim reports, said the confirmed haul of 1,719 BTC could climb past 2,300 BTC once all cases are verified, with cumulative losses likely to surpass $130 million. The firm identified at least 15 distinct attackers across four suspected waves, with the largest single theft removing 1,159 BTC across seven addresses. Roughly 88 percent of stolen funds came from wallets inactive for at least a year, with the typical compromised coin dormant for 3.5 years, Thorn's analysis showed. On a per-victim basis, the median user lost 1.022 BTC, with average losses reaching 4.04 BTC.

The thefts stem from a March 2021 firmware error that silently substituted a software pseudo-random number generator for Coldcard's hardware source during seed creation, leaving affected seeds with as few as 40 bits of effective entropy. Block's Bitcoin engineering team independently confirmed the flaw, and Coinkite has released corrected firmware for every affected model, though existing seeds remain permanently weakened regardless of the version installed. Kraken chief security officer Nick Percoco has called for mandatory independent entropy testing across all hardware wallet manufacturers, citing NIST SP 800-90B and Germany's BSI AIS-31 as models. Chainalysis found Canadian Bitcoin holders account for about 25 percent of attributable losses.

The incident has pushed users toward managed custody. OKX reported record inflows since the attacks began, with chief compliance officer Jonathan Brockmeier describing the shift as "the flip side of FTX." K33 Research recorded nearly 890,000 BTC moved on-chain in the seven days following the initial sweeps, the highest seven-day active supply figure of 2026, while Bitcoin's 30-day realized volatility fell below that of the Nasdaq 100. A parallel AI-assisted audit of Bitcoin wallet codebases has surfaced 85 critical-severity findings across multiple implementations, suggesting the Coldcard case is the most visible instance of a wider entropy-handling problem.

BIP-110's collapse

Separately, the BIP-110 minority chain stalled almost immediately after splitting from the main network, with no meaningful blocks produced. The failed fork raises questions about Bitcoin's governance and upgrade process, though the market's muted reaction suggests traders largely dismissed the event as a non-event. Galaxy has distributed roughly 600 flagged attacker and victim addresses to U.S. federal law enforcement and exchanges to support monitoring, with about 90 percent of stolen Bitcoin still unmoved, giving compliance teams time to flag destinations before funds reach cash-out services.

The dual events test Bitcoin's resilience as a market. On-chain activity surged to a 2026 high as holders migrated addresses, while the price held its range. The next key level to watch is whether BTC can hold $64,500 support, with resistance at $65,250, as Galaxy warns additional attackers may still target unpatched wallets.

This article is for informational purposes only and does not constitute investment advice.