Bitcoin Slips to $63,600 as Exploits and Outflows Hit BTC

Bitcoin is seeing a tough start to August, trading around $63,600 after a one percent weekly decline. Several factors are weighing on the market right now, including a major security scare involving Coldcard hardware wallets. Reports show that thousands of Bitcoin worth millions of dollars were drained due to vulnerable firmware versions, which severely crushed social sentiment across social media platforms.

At the same time, institutional appetite for spot Bitcoin exchange traded funds has cooled down. After a strong run of consecutive green days in July, outflows have started to dominate the sector once again. This slowdown matters because these regulated products are a key driver for conservative investors like pension funds and hedge funds who prefer to skip managing private keys.

Adding to the recent bearish mood, corporate giant Strategy revealed a sale of 1,637 Bitcoin for about $105 million between July 27 and August 2. Traders should also keep historical trends in mind, because August has traditionally been a rough month for the top cryptocurrency, closing in the red nine out of the last thirteen times. Watch for key support levels to hold if the market wants to avoid further pain.