Bitcoin Active Addresses Hit 8 Month High After Coldcard Exploit

Bitcoin active addresses jumped to roughly 0.98 million per day on July 31, hitting the highest daily count since December 2024. Analytics firm Glassnode reported that the sudden surge was fear driven on chain activity, as holders hurried to migrate seeds and move funds to alternative custody options. Coin Metrics data showed that active addresses jumped 54 percent above the July average, while exchange balances climbed by over 22,000 coins in the days following the incident.

The panic follows a vulnerability involving specific Coldcard firmware versions that produced weakened wallet randomness. Coinkite, the maker of Coldcard, disclosed that affected seeds carry lower entropy than intended. Security researchers confirmed that total losses have already passed 100 million dollars after attackers swept funds from thousands of addresses. Coinkite urged all users who generated seeds on vulnerable firmware to move their funds to a fresh seed on patched hardware immediately.

Market sentiment took a hit alongside the security panic. Santiment tracked a sharp drop in positive social media commentary, reaching the lowest bullish to bearish ratio on record for the platform. Bitcoin traded hands around 64,606 dollars as the dust settled. Traders should watch on chain fund flows closely to see if exchange balances stabilize or if users continue moving coins to cold storage.