Coldcard vulnerability triggers Bitcoin flight, bullish cryptocurrency consolidation: Hodler Digest,

Cold storage raises concerns after Coldcard users lost US$90 million in bitcoin

After Coldcard wallet users were stolen US$90 million in bitcoin, small hoarders fled to centralized exchanges and other alternative custody methods to seek refuge.

According to data shared by CryptoQuant research director Julio Moreno on Saturday, Bitcoin transfers below 1 BTC climbed to the highest single-day level since 2022 on Friday, with a total of 39,600 BTC transferred. This figure is only 300 less than the 39,900 BTC transferred on November 16, 2022, a few days after FTX filed for bankruptcy.

Galaxy Research, the research arm of crypto investment firm Galaxy Digital, reported on Saturday that a third wave of attacks on hardware wallet users over the weekend resulted in the theft of approximately 1,367 BTC ($88.6 million) from 4,585 addresses. Alex Thorne, director of company-wide research at Galaxy Digital, warned in an X post on Sunday that the attack was continuing and urged users to immediately transfer funds from addresses generated by Coldcard if they have not already been transferred. It is reported that this exploit targets a flaw in the Coldcard seed generation process, which does not use a truly random number generator.

Source: Alex Thorne

Countdown to the Clarification Act: No vote, or "no" vote?

President Donald Trump is considering a revised ethics proposal for the Clarity Act drafted by Senators Tom Tillis and Ruben Gallego. Trump The original proposal originally approved should have prohibited elected officials from supporting or profiting from crypto projects and was enforced by the Justice Department. Democrats distrust the Justice Department and want state attorneys general to enforce it. The compromise allows state attorneys general to sue the Justice Department if it fails to enforce the rules correctly, rather than directly prosecuting elected officials (* cough, Trump *).

With only five days left before the deadline, the chances of the Senate voting on the legislation are diminishing, let alone the three separate votes needed to pass the bill. Trump 's $1.4 billion in crypto profits is a particularly tricky point, with Senate Minority Leader Chuck Schumer introducing a (but slim hope of passage) proposal called the Anti-Corruption Bureau Establishment Act that targets "corruption in the executive branch."

Ethics issues are not the only outstanding issue, with banks still dissatisfied with paying stablecoin gains, and law enforcement agencies are divided on the impact of the Blockchain Regulatory Definiteness Act. The bill is designed to protect blockchain developers, but some believe it will hinder money laundering and fraud investigations. Changes to the BRCA proposed by the U.S. Association of Assistant Prosecutors and the National Association of District Attorneys appear to be dead. White House encryption consultant Patrick Witt scoffed at the proposals and the suggestion that they stem from "fruitful negotiations." "It's not far from it," he said.

Encrypt "zero-yield" earnings report

Currently, no one seems to be making much money in the crypto space-at least based on the second-quarter corporate earnings report released this week. Coinbase generated net revenue of approximately $1.2 billion, down 19% year-on-year. The company's net loss was $359 million, well above analysts 'expectations for a loss of $122 million. Trading revenue, subscription and services revenue, and adjusted EBITDA were all below market expectations.

Strategy's habit of buying crazily every time Bitcoin highs caused it to record a loss of US$8.22 billion in the second quarter, almost entirely caused by unrealized losses on its holdings of Bitcoin. However, the company also said it has now established $3.75 billion in U.S. dollar reserves, enough to pay preferred stock dividends and interest obligations for more than two years.

Online broker Robinhood makes a lot of money, but most of it doesn't come from the crypto business. The company's second-quarter revenue and profit both set records, although cryptocurrency trading revenue fell 38% year-on-year to $100 million from $160 million.

The encryption industry enters the largest stage of integration in history

ARK Invest analyst Lorenzo Valente said that the cryptocurrency industry is entering the largest stage of consolidation in its history, with revenue increasingly concentrated in the hands of a few dominant agreements. Valente pointed out that the perpetual futures exchange Hyperliquid and the miniin launch pad Pump.fun together account for approximately 67% of total revenue from crypto applications. Add in the synthetic dollar agreement Ethena, and the total share of the top three is close to 80%. Valente added that he expected the trend to accelerate in the coming months, leading to more mergers and acquisitions, Chapter 11 bankruptcies, project closures and talent acquisitions. Somewhat surprisingly, he concluded: "This is extremely bullish for the industry as a whole."

World Cup Created US$20 billion in transaction volume in the blockchain prediction market

According to a report by blockchain analysis company Chainalysis, The 2026 FIFA World Cup promoted US$20 billion in blockchain predicted market transaction volume and US$24 million in digital collectibles transactions, with more than 400,000 wallets participating in blockchain-based bets . The $20 billion figure includes pre-match and intra-event transactions, with bettors betting totaling approximately $5.7 billion during the five-week World Cup . The report stated that World Cup related markets accounted for approximately 63% of all forecast market activity during this period.

Winners and Losers of the Week

As of the weekend, Bitcoin (BTC) fell 3% to $63,350; Ethereum (ETH) fell 3.5% to $1,879; and XRP (XRP) fell 2.3% to $1.08. According to CoinMarketCap data, the total market value is US$2.18 trillion. Among the top 100 cryptocurrencies by market capitalisation, the top three altcoins with gains this week were: Cardano (ADA) rose 14.7%, Uniswap (UNI) rose 8%, and Pi (PI) rose 3.2%. The top three altcoins that fell this week were: Stable (STABLE) fell 16%, Venice Token (VVV) fell 14.6%, and Lido DAO (LDO) fell 14.1%.

This week's forecast

Bitcoin may have bottomed out early rather than traditional cyclical lows. Asset manager Grayscale, which focuses on crypto assets, said bitcoin prices may have hit bottom earlier than in the traditional four-year cycle, where traditional cycle lows typically occur in September or October. Research director Zach Pander believes that Bitcoin (BTC) is "mature" as an asset and is increasingly driven by macroeconomic factors. "If the Fed abandons raising interest rates and economic growth remains good, bitcoin prices may have bottomed out," Pander wrote in a report. However, this "medicine of hope" has been peddled for months. In early July, crypto broker K33 pointed out that more than 50% of Bitcoin supply was at a loss, another sign that the market was about to bottom out. In June, Swan Bitcoin CEO Corey Klipsten told Cointelegraph that long-term holders held a record 14.7 million bitcoins, another sign that Bitcoin was about to hit a bottom. Sooner or later, someone will be right.

This week's top FUD

Russians ... and Australia... are targeting Telegram's Pavel Durov. Russian Authorities have placed Telegram founder Pavel Durov on the international wanted list and upgraded a criminal case accusing him of aiding terrorist activities. According to local news agency Interfax, Russia The Federal Security Service (FSB) said on Wednesday it had charged Durov with aiding terrorist activities and issued an international arrest warrant against him. The FSB alleges that Telegram failed to remove channels, chat groups and robots used by Ukraine's intelligence agencies, suspected terrorist and extremist groups to coordinate attacks, recruit agents and carry out online fraud. Durov expressed disapproval on Thursday, saying that Russians had "no idea who could ban whom on the Internet." Meanwhile, Australia's electronic security commissioner has filed court proceedings against Telegram seeking civil penalties, accusing the platform of failing to remove terrorism-related content.

Pump.fun fires employees before receiving millions of PUMP tokens

Solana-based miniin launch pad Pump.fun reportedly fires employees two months before they were about to receive millions of dollars worth of PUMP tokens. According to Friday's Sandmark report, at least one Pump.fun employee should have received seven-figure PUMP tokens. The employees were reportedly fired in April after two months after an agreement signed in 2025.

Trump The teleprompter operator accused of using Kalshi to bet has resigned

According to the Associated Press, a man accused of using inside information to assassinate President Donald Trump The White House teleprompter operator who predicted profits in the market no longer works for the federal government. According to previous ABC News reports, the operator was accused of using non-public information to earn more than $100,000 in the Kalshi forecast market related to Trump speeches.