A firmware bug in Coldcard wallets from March 2021 is still draining coins. This week alone, attackers swept $116 million across four separate waves. The latest hit moved 388.9 BTC in a single evening. The vulnerability, which generated recovery seeds with 40 bits of entropy instead of 128, left thousands of long-term holders exposed to brute-force attacks that work in hours, not years.

Bitcoin developer James O'Beirne set up a live tracker to map the theft in real time. He seeded the network with test wallets built on the broken default seeds to measure attacker speed. His control wallet with zero added entropy was cleaned out within 60 minutes. The message was clear: hackers are continuously scanning the vulnerable seed space and moving fast.

Coinkite, the Canadian manufacturer behind Coldcard, halted all shipments and destroyed remaining inventory made with the flawed firmware. The company told customers the bug has been patched in newer versions, but that offers cold comfort to anyone holding coins in devices made before the fix rolled out.

The selling pressure builds elsewhere

Michael Saylor's MicroStrategy disclosed a $104.7 million bitcoin sale of 1,638 BTC this week, marking the company's third dump in 2026. Wallets linked to the firm moved another 1,030 BTC on Wednesday, raising fresh fears about a fourth round of liquidation. Combined with the Coldcard chaos, the selling pressure is mounting.

In Washington, the Clarity Act took a political hit. Senate Democrats balked over ethics provisions, and the cloture vote is now expected to fail. Polymarket odds on the bill becoming law this year dropped from 27% to 23% in a matter of days.

Through all this noise, bitcoin has refused to collapse. It's hovering near $64,000, down sharply from recent highs but stubbornly stable. Analysts at Capriole peg the production cost of bitcoin at $54,000, a floor that bulls keep citing as prices chop sideways. The fact that the market hasn't cracked lower despite a week of almost uniformly bad headlines suggests the selling pressure, while real, isn't yet overwhelming the underlying demand.

This article is informational and does not constitute financial advice. Cryptocurrency markets are highly volatile and carry significant risk.