Bitcoin Climbs Above $65,000 Despite Coldcard Hack and Clarity Act Delay
Key Takeaways
- •Bitcoin traded above $65,170, gaining nearly 4% over the past week despite multiple negative developments.
- •A firmware vulnerability in Coldcard hardware wallets built by Coinkite has led to estimated Bitcoin losses exceeding $130 million.
- •The Clarity Act, which would create a comprehensive digital asset regulatory framework in the United States, has been postponed until September as lawmakers departed for recess.
- •Bitcoin ETF products attracted $763.6 million in fresh capital during the week, with BlackRock's iShares Bitcoin Trust and Morgan Stanley's fund recording significant inflows.
- •Cautious investors have begun relocating their Bitcoin holdings to alternative storage options, including cryptocurrency exchanges, following the Coldcard exploit.
Bitcoin advanced on Friday, shrugging off a pair of negative developments: a delay in the Clarity Act's legislative timeline and a major exploit targeting Coldcard hardware wallets.
The world's largest cryptocurrency was trading above $65,170, gaining nearly 4% over the past week despite the headwinds.
JUST IN: $65,177 Bitcoin! pic.twitter.com/ZZzVloKXjM — Bitcoin Magazine (@BitcoinMagazine) August 7, 2026
JUST IN: $65,177 Bitcoin! pic.twitter.com/ZZzVloKXjM
Coldcard Vulnerability Leads to $130 Million in Losses
More than a week ago, hackers began siphoning millions of dollars in Bitcoin from Coldcard wallets after discovering a firmware vulnerability. A flaw in the hardware wallets — built by Canadian company Coinkite — allowed attackers to guess weak private keys. Current estimates place total Bitcoin losses at over $130 million, with funds being drained on a daily basis since the attack was initiated.
The incident has unsettled the Bitcoin community, which has long regarded cold storage solutions as a gold standard for security. Hardware wallet exploits of this scale are uncommon in the cryptocurrency industry, where exchange breaches and DeFi protocol exploits have historically accounted for the majority of major thefts. Cautious investors have been relocating their holdings to alternative storage options, including cryptocurrency exchanges.
Clarity Act Pushed to September
Late Thursday, news broke that the crypto market structure bill known as the Clarity Act would be postponed until September, as lawmakers departed for recess. If passed, the legislation would establish a comprehensive digital asset regulatory framework in the United States — a development widely viewed as favorable for Bitcoin and the broader cryptocurrency market. The Clarity Act is one of several crypto-related proposals advancing through Congress, reflecting growing legislative attention to digital asset regulation following years of calls from industry participants for clearer rules.
ETF Inflows Drive Price Momentum
Despite the negative headlines, Bitcoin continued its upward trajectory as investors poured capital into exchange-traded funds. BlackRock's iShares Bitcoin Trust and Morgan Stanley's fund both recorded significant inflows this week, according to data from Farside Investors.
Since the start of the week, $763.6 million in fresh capital has flowed into the Bitcoin ETF products, which are managed by major asset managers including Fidelity, Grayscale, and others. Spot Bitcoin ETFs, which received SEC approval in January 2024, have given institutional and retail investors a way to gain Bitcoin exposure without self-custody. Bitcoin's price has historically performed well during periods of sustained ETF inflows.
Bloomberg Intelligence senior ETF analyst Eric Balchunas noted that while the inflows may not be directly tied to the Coldcard hack, it would be logical for investors to rotate their assets into the widely successful ETF products.
This article was written by Mathew Di Salvo and originally published on Bitcoin Magazine.
Related: Coldcard Wallet Exposed After Bitcoin Hack | Clarity Act Vote Delayed