Coldcard Fallout Triggers Major Shift in Bitcoin Holdings as 210,000 BTC Leaves Old Wallets

The aftermath of the Coldcard security breach is showing up onchain, with roughly 210,000 bitcoin moving out of long-term holder wallets over the past week, marking the largest such decline since December 2024.

Long-Term Holder Supply Falls Sharply

According to Glassnode data, long-term holder supply has dropped from nearly 15 million BTC to approximately 14.7 million BTC. Glassnode defines long-term holders as wallets holding coins dormant for roughly 155 days, a group often viewed as more experienced market participants who tend to hold through volatility.

Different From Past Distribution Waves

Historically, heavy movement from long-term holders has coincided with market tops, as seen in March 2021, March 2024, and December 2024. This time, however, the shift is happening near market lows, with bitcoin trading around $64,000, about 50% below its October peak. Notably, bitcoin has not made new lows following the hack, suggesting this movement reflects custody changes rather than profit-taking.

Custody Migration Following the Breach

The Coldcard exploit stemmed from weak randomness in affected firmware, allowing attackers to reconstruct wallet recovery phrases and drain funds, with losses estimated as high as $114 million.

Coldcard urged affected users to generate new wallets entirely, since firmware updates alone cannot secure already-compromised keys. Some of the onchain movement likely reflects users transferring funds to new wallets or regulated custodians. US spot bitcoin ETFs attracted about $754 million over the past week, with BlackRock’s IBIT accounting for most inflows.