Bitcoin gained momentum as market pressure eased following the Coldcard wallet exploit and Strategy’s recent BTC sales, though investor sentiment remained firmly in the “extreme fear” zone.
Bitcoin (BTC) climbed 1.6% over the past 24 hours, briefly touching $64,160, its highest level since July 31, before giving up some gains. The recovery came after a recent decline triggered by a Coldcard wallet security breach and selling activity from Strategy, the world’s largest corporate bitcoin holder.
The Coldcard exploit has resulted in the loss of approximately 1,816 BTC, worth about $114 million, from more than 5,200 wallet addresses since July 30, according to researchers monitoring the incident. The attack targeted a vulnerability tied to Coldcard wallet firmware.
Meanwhile, Strategy sold 1,638 BTC between July 27 and Aug. 2 at an average price of $63,957 per bitcoin. The transaction represented the company’s third BTC sale this year and was executed below its average purchase price of $75,419. Strategy said the proceeds were allocated toward preferred stock dividends and STRC share repurchases rather than additional bitcoin purchases.
Despite the price recovery, market sentiment remained weak. The Crypto Fear & Greed Index dropped to 25, signaling “extreme fear.” Spot bitcoin ETFs recorded $61.5 million in net outflows last week before attracting $170 million in inflows on Monday. Ethereum ETFs saw $27.4 million in weekly inflows, followed by $11.4 million in outflows at the start of the week.
The yen also faced sharp selling pressure, falling nearly 4% after U.S. Treasury Secretary Scott Bessent confirmed coordinated intervention between the U.S. and Japan. The move brought back memories of the August 2024 carry-trade unwind, although bitcoin’s strong negative correlation with USD/JPY suggests broader dollar strength remains the more significant market factor.
Derivatives Market Overview
ATOM sees increased futures activity:
Cosmos’ ATOM jumped nearly 9% in the past day, making it one of the strongest performers among major tokens. The move coincided with elevated futures activity, with open interest approaching a record 80 million tokens.
Short positioning builds around ATOM:
Despite the price increase, ATOM’s perpetual funding rates and 24-hour open-interest-adjusted cumulative volume delta (CVD) remain negative. This indicates traders are maintaining bearish positions or hedges against the rally. While ATOM has gained 12% over three days, the token remains well below previous levels and is still recovering from a broader downtrend.
ADA futures hit new highs:
Cardano’s ADA has attracted significant derivatives demand, with futures open interest reaching a record 2.79 billion coins. Its 24-hour CVD is the strongest among major cryptocurrencies, showing aggressive buying through market orders. Slightly positive funding rates also suggest traders remain supportive of the upward move.
BTC and ETH futures remain steady:
Bitcoin’s recent rise in open interest was short-lived, with levels returning to roughly 740,000 BTC, where they have remained in recent weeks. Ethereum futures activity has also stayed relatively flat.
Altcoin performance remains uneven:
Among the top 20 cryptocurrencies, momentum is mixed. ADA, TRX, ZEC, AVAX, and ETH are seeing positive buying pressure, while several other major tokens continue to experience weaker demand.
Bitcoin Volatility and Options Activity
Bitcoin’s 30-day implied volatility index (BVIV) has declined toward 36%, reaching its lowest level since May 31. The drop suggests calmer market conditions and reduced demand for downside protection through options. However, volatility is trading below its longer-term averages, leaving room for a potential rebound if market uncertainty returns.
Options activity on Deribit remains concentrated around the $60,000 put strike and $70,000 and $72,000 call strikes. This places the $60,000–$72,000 range as an important zone where stronger price moves could emerge.
Bitcoin’s most actively traded option over the past 24 hours was the $70,000 call, while Ethereum traders showed the strongest interest around the $1,900 call.
ADA Leads Altcoin Gains
Cardano’s ADA surged to $0.195, its highest price since July 4, with its market capitalization climbing 24% over the past week, according to Santiment data. The move positioned ADA as one of the strongest performers in an otherwise mixed altcoin market.
The rally has taken place despite a decline in the number of ADA wallets. Cardano has around 7,070 fewer non-empty addresses than two months ago, suggesting the price increase has been driven by existing holders and stronger buyers rather than a wave of new retail participation.
The trend creates a mixed outlook. A smaller group of committed investors supporting prices may indicate stronger conviction, but it also leaves the rally dependent on a narrower base of buyers. A rise in wallet activity would provide additional confirmation, while continued price gains alongside declining holder numbers could signal a fragile advance.
Beyond market momentum, Cardano’s ecosystem continues to expand through developments including Leios testing, Hydra scaling improvements, Mithril upgrades, Pyth oracle integration, and new Catalyst funding programs for developers. These advancements provide fundamental support for ADA’s recovery rather than relying solely on short-term speculation.
