Bullish

Bitcoin 7-day hot supply surges 98% as Coldcard flaw triggers massive BTC movements

2026-08-05 22:18

Firmware vulnerability in Coldcard wallets drove ~890,000 BTC transfers in 7 days, setting a 2026 record for active supply and causing significant exchange inflows.

Woofun AI data shows that Bitcoin's 7-day hot supply increased by 98%, rising from 403,101.95 BTC on July 28 to 797,407.72 BTC on August 4. This surge, totaling approximately 394,306 BTC, represents the highest weekly active supply record for 2026.

The movement stems from a firmware flaw introduced by Coinkite in March 2021, which may generate wallet seeds with insufficient randomness. Since July 30, coordinated transfers have removed nearly 2,000 BTC from thousands of addresses, with K33 estimating that around 7,300 addresses had approximately 1,596 BTC stolen. Exchanges recorded net inflows of 22,052 BTC following the incident, while 39 dormant addresses moved a total of 1,486.09044782 BTC worth over $95 million.

WOOFUN AI

Impact Assessment · Quick Read

The spike in Bitcoin's hot supply indicates a shift from cold storage to exchanges, likely driven by the exploitation of legacy hardware wallet vulnerabilities. Such large-scale movements from dormant addresses could increase short-term sell pressure if stolen funds are liquidated. The incident highlights ongoing security risks for early-era Bitcoin holders using compromised firmware.
Generated by WOOFUN AI · For reference only, not investment advice

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