ZachXBT Slams Hardware Wallets as Bitcoin Holds Near $65,000 After Korea Rate Hike

Blockchain investigator ZachXBT sharply criticized hardware wallets on Thursday, calling them unreliable for securing meaningful crypto holdings, as bitcoin traded steady near $65,000 following an interest rate increase from South Korea’s central bank.

ZachXBT’s Case Against Hardware Wallets

ZachXBT argued that current hardware wallet solutions fall short on both security and usability, making them poorly suited for high-stakes crypto operations. Instead, he recommended using a dedicated iPhone stripped down purely for signing transactions, saying this setup offers better control and fewer vulnerabilities than traditional hardware devices, though he added the caveat that the approach only works well for users who understand what they are doing.

Ledger Singled Out

ZachXBT specifically called out Ledger as the weakest option, pointing to frequent Ledger Live software updates that overhaul the user interface unnecessarily and often break basic functionality in the process. His comments quickly stirred debate across crypto social media, with many users sharing similar frustrations with hardware wallet reliability.

Bitcoin Holds Steady Amid Korea Rate Move

Bitcoin traded just below $65,000 early Thursday after the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75%, its first hike in more than three years. The move matched economist expectations and was aimed at addressing inflation, which climbed to 3.2% in Korea, its highest level since 2023. The central bank noted that price pressures are likely to stay elevated as higher energy costs continue working through the economy.

Won Strengthens, Bitcoin Flat Against It

Following the rate decision, the Korean won strengthened to around 1,480 per US dollar, continuing its recovery from roughly 1,560 two weeks earlier. Bitcoin remained largely flat against the won, trading above KRW 94.96 million on local exchange Upbit.

Analysts Question Rally’s Foundation

Separately, analysts at Bitfinex argued that bitcoin’s move toward $65,000 reflects macro trading dynamics rather than genuine crypto demand. They noted that softer June inflation data reduced the odds of a July Federal Reserve rate hike, pulling Treasury yields lower and lifting risk assets broadly, bitcoin included. However, US spot ETFs sold around $425 million on July 13, and the Coinbase premium, a gauge of American institutional demand, remains negative, leading Bitfinex to describe the rally as “borrowed strength” that could reverse without independent bitcoin demand behind it.