The security flaw in Coldcard hardware wallet, revealed on July 30 and tied to weak entropy making certain recovery phrases offline-guessable, triggered massive Bitcoin network activity. Transfers of less than 1 BTC reached 39,600 BTC on July 31, the highest daily level since November 2022 and FTX’s collapse, which saw 39,900 BTC transferred on November 16 of the same year. Daily active addresses jumped from roughly 645,000 on July 30 to nearly one million the following day. Yet Bitcoin’s price barely moved, with no visible crash or panic selling, marking a clear distinction from a true confidence crisis. Unlike the post-FTX period when holders fled to self-custody, some worried investors this time sent Bitcoin back to exchanges, the exact opposite reflex of 2022.
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