Bitcoin moved higher as investors looked beyond the recent Coldcard wallet exploit and Strategy’s bitcoin sales, although market sentiment remained trapped in “extreme fear.”
Bitcoin (BTC) gained 1.6% in the past 24 hours, reaching $64,160 before easing back slightly. The move marked BTC’s strongest level since July 31 and came after the market absorbed selling pressure from the Coldcard security incident and fresh bitcoin sales from Strategy, the largest publicly traded corporate holder of the asset.
The Coldcard exploit has reportedly drained about 1,816 BTC, valued at roughly $114 million, from more than 5,200 wallet addresses since July 30. Researchers said the attack took advantage of a vulnerability in Coldcard wallet firmware, allowing attackers to access affected wallets.
Adding to recent selling pressure, Strategy sold 1,638 BTC between July 27 and Aug. 2 at an average price of $63,957 per coin. The sale marked the company’s third bitcoin disposal this year and was completed below its average acquisition cost of $75,419. Strategy said the proceeds were used to support preferred stock dividends and STRC buybacks rather than to purchase additional BTC.
Investor confidence remained weak despite bitcoin’s recovery. The Crypto Fear & Greed Index slipped to 25, placing market sentiment in the “extreme fear” category. Spot bitcoin ETFs posted $61.5 million in outflows last week, although they attracted $170 million in inflows the following day. Ether ETFs recorded $27.4 million in weekly inflows before seeing $11.4 million leave on Monday.
Currency markets also influenced broader risk sentiment, with the Japanese yen dropping nearly 4% after U.S. Treasury Secretary Scott Bessent confirmed coordinated intervention efforts between Washington and Tokyo. The move revived comparisons to the August 2024 carry-trade disruption, though bitcoin’s strong negative correlation with USD/JPY indicates that dollar strength remains the bigger concern for crypto markets.
Derivatives Market Activity
ATOM futures show rising leverage:
Cosmos’ ATOM jumped nearly 9% over the past day, ranking among the strongest performers in the market. The rally came alongside heavy futures activity, with open interest approaching a record 80 million tokens.
Traders remain cautious on ATOM:
Despite the price increase, ATOM’s perpetual funding rates and 24-hour open-interest-adjusted cumulative volume delta (CVD) remain negative. The data suggests traders are adding short exposure or hedging against the rally. Although ATOM has climbed 12% over three days, the token is still recovering from a prolonged decline.
ADA attracts record futures demand:
Cardano’s ADA also stood out, with futures open interest reaching a record 2.79 billion coins. Its 24-hour CVD ranks highest among major cryptocurrencies, showing aggressive market buying. Slightly positive funding rates further indicate continued trader confidence in the move.
BTC and ETH derivatives remain quiet:
Bitcoin’s recent increase in open interest quickly faded, returning to around 740,000 BTC, where it has remained stable in recent weeks. Ethereum futures activity has followed a similar pattern, showing limited momentum.
Altcoin momentum remains mixed:
Performance across major altcoins is uneven. ADA, TRX, ZEC, AVAX, and ETH are showing positive buying pressure, while several other large-cap tokens continue to see weaker demand.
Bitcoin Volatility and Options Positioning
Bitcoin’s 30-day implied volatility index (BVIV) has declined to nearly 36%, marking its lowest point since May 31. The decline reflects calmer market conditions and reduced demand for protective options. However, volatility remains below its historical averages, leaving room for a possible rebound if uncertainty increases.
In the options market, traders are concentrated around the $60,000 put strike and the $70,000 and $72,000 call strikes. This places the $60,000–$72,000 range as a key area where a stronger directional move could develop.
The most actively traded bitcoin option over the past 24 hours was the $70,000 call, while Ethereum traders showed the strongest activity around the $1,900 call.
ADA Emerges as a Market Leader
Cardano’s ADA climbed to $0.195, reaching its highest level since July 4, while its market capitalization increased 24% over the past week, according to Santiment data. The move made ADA one of the strongest performers in an otherwise uncertain altcoin market.
The rally has occurred despite a decline in ADA wallet activity. The network currently has around 7,070 fewer non-empty wallets than two months ago, suggesting the price rise has been driven by stronger existing buyers rather than a return of retail investors.
The trend presents both bullish and cautious signals. A smaller group of committed holders supporting the rally may reflect stronger conviction, but it also means the move could be more vulnerable if demand fails to expand. Rising wallet numbers would strengthen the recovery case, while continued price gains alongside declining holders could indicate limited market participation.
Cardano’s recovery is also supported by ongoing ecosystem developments, including progress on the Leios testnet, Hydra scaling solutions, Mithril upgrades, Pyth price-feed integration, and new Catalyst funding initiatives. These improvements provide a stronger foundation for ADA’s gains beyond short-term market speculation.
