Bitcoin Magazine

Bitcoin Shrugs off Coldcard Hack and Clarity Act Delays, Price Chops Higher as Investors Buy ETFs

Bitcoin was trading higher on Friday — despite negative news circulating regarding the Clarity Act delay and a massive exploit of the popular Coldcard wallets. 

The biggest cryptocurrency was trading above $65,170 today, up nearly 4% over the past week, despite significant headwinds against the asset. 

Little over a week ago, hackers started stealing millions in Bitcoin from Coldcard wallets after discovering a vulnerability in the product’s software. Some estimates put the amount of Bitcoin lost now at over $130 million. 

The incident has rattled the BTC community that typically praises cold storage solutions. 

And news dropped late Thursday night that the crypto market structure bill would be delayed until September as lawmakers break for recess. The bill, if approved, would set in stone digital asset regulation in the U.S. and would be bullish for the biggest cryptocurrency. 

Still, Bitcoin made gains as investors carried on buying shares of the exchange-traded funds: BlackRock’s iShares Bitcoin Trust, and Morgan Stanley’s fund have both seen significant inflows this week, according to data from Farside Investors. 

Bitcoin’s price has typically done well when investors have thrown cash at the products, managed by Fidelity, Grayscale, and other top asset managers. 

Since the beginning of this week, $763.6 million in fresh cash has hit the funds. 

Bloomberg Intelligence’s senior ETF analyst, Eric Balchunas, said the flows might not be related to the Coldcard hack, but it would make sense for investors to rotate into the highly successful products. 

A firmware flaw in the popular Coldcard hardware wallets, built by Canadian company Coinkite, has allowed an attacker to guess weak private keys.

Millions of dollars in Bitcoin has been drained on a daily basis since the attack, and cautious investors have been moving their coins to other storage solutions — including exchanges. 

This post Bitcoin Shrugs off Coldcard Hack and Clarity Act Delays, Price Chops Higher as Investors Buy ETFs first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Source: BitcoinMagazine