Security Vulnerability in Coldcard Triggers Massive Bitcoin Migration: 210,000 BTC Shifting There
Following the security vulnerability in Coldcard hardware wallets, approximately 210,000 Bitcoin (BTC) moved out of long-term investor wallets, initiating a massive digital migration.
The cryptocurrency world is closely monitoring the on-chain implications of the security breach that occurred at popular hardware wallet manufacturer Coldcard. Current data shared by Glassnode revealed that approximately 210,000 BTC flowed out of long-term holder (LTH) wallets within the past week. This activity was recorded as the largest supply drop seen since December 2024, when the Bitcoin price neared the $100,000 threshold.
Under normal circumstances, the LTH group—investors who haven’t moved their assets for at least 155 days—typically sell to realize profits at market peaks. However, the situation is quite different this time. Occurring while Bitcoin is trading around $64,000—approximately 50% below its peak—this massive activity is being interpreted as a mandatory security migration rather than selling pressure. As seen in the shared data, LTH supply took a sharp dive from the 15 million BTC mark to the 14.7 million BTC level.
Bitcoin Investors Seek Safe Haven
The vulnerability in Coldcard’s software, which allowed attackers to access wallet recovery seeds, led to a loss of approximately $114 million. The company advised affected users to urgently create new wallets and move their funds. This situation forms the primary reason for the on-chain activity. Investors are shifting their assets not only to new wallets but also to more institutional and regulated custody solutions, such as spot Bitcoin ETF products.
The data supports this thesis; indeed, last week, U.S.-based spot Bitcoin ETFs saw a total net inflow of $754 million. BlackRock’s IBIT fund absorbed the majority of these inflows. Consequently, this decrease in LTH supply does not symbolize a loss of faith in the market, but rather an effort to secure assets following the Coldcard incident. The on-chain activity shows that custody methods are evolving without creating a new bottom in Bitcoin’s price.