Bitcoin Recovers to $64,000 After Hacking and Strategy Sell-off Shocks... Cardano Surges

▲ Bitcoin (BTC) ©CoinReaders

Bitcoin (BTC) has recovered to $64,000, shaking off the shocks of the Coldcard hack and Strategy's sell-off, while Cardano (ADA) has emerged as a powerhouse in the altcoin market, accompanied by record-high open interest.

According to investment media FXStreet on August 4 (local time), Bitcoin rose 1.6% over 24 hours to $64,160, marking its highest price since July 31, before giving back some of its gains. Concerns about the Coldcard wallet vulnerability, which triggered the recent decline, and the sell-off of Bitcoin by the world's largest corporate holder have subsided, leading to a price rebound.

It was reported that approximately 1,816 BTC, worth $114 million, was leaked from over 5,200 addresses since July 30, due to an attack exploiting a Coldcard firmware flaw. Strategy also sold 1,638 BTC at an average price of $63,957 from July 27 to August 2. This is the third sale this year, at a price lower than the company's average purchase price of $75,419. The proceeds from the sale will be used for dividends on preferred stock STRC and share buybacks.

The crypto Fear & Greed Index dropped to 25, indicating "extreme fear," but institutional inflows improved. After $61.5 million flowed out of US spot Bitcoin ETFs last week, $170 million net inflow was recorded the day before. Ethereum (ETH) spot ETFs recorded a net inflow of $27.4 million last week but saw an outflow of $11.4 million on Monday. Bitcoin's 30-day implied volatility index (BVIV) fell to approximately 36%, its lowest level since May 31. Option trading concentrated on $60,000 put options and $70,000/$72,000 call options, suggesting the possibility of rapid price movements if it breaks out of this range.

In derivatives, Cardano and Cosmos (ATOM) stood out. Cardano futures open interest reached an all-time high of 2.79 billion, and its 24-hour adjusted cumulative volume delta (CVD) was also the highest among major coins. The funding rate also showed a slight positive value, supporting the rise in spot prices. Cosmos rose by approximately 9%, with open interest nearing its all-time high of 80 million. However, both the funding rate and cumulative volume delta were negative, indicating that the market is hedging the spot rebound with short positions.

Cardano rose to $0.195, reaching its highest price since July 4, and according to Santiment, its market capitalization increased by 24% over the week. Conversely, the number of wallets with balances decreased by 7,070 compared to two months ago, suggesting that strong buying entities absorbed selling pressure without follow-up buying from individual investors. The Leios testnet, Hydra scaling solution, Mithril upgrade, Pyth price feed integration, and Catalyst funding for developers were also cited as foundations for the rebound. However, if the number of wallets continues to decrease despite price increases, it could be a shallow rebound reliant on a few investors, making the influx of new holders crucial for sustainability.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*