Bitcoin climbs back above $64,000 as Coldcard hack worries ease

Bitcoin [BTC] drew a wave of bearish talk on July 31 after sliding from an intraday high of $65,409 to $62,466, then falling further on August 1. The downturn has since lost momentum. In early Tuesday trading, BTC bounced from its lows and moved back above $64,000. Beyond the price drop, sentiment was weighed by concerns tied to the Coldcard hardware wallet hack. Short-term holders drove the initial selling Short-term holders (STH)—investors holding Bitcoin for fewer than 155 days—were among the earliest sellers, adding pressure to the recent decline. Axel Adler's STH profit/loss to exchange metric points to heavy selling since the start of August, totaling 7,336.40 BTC, valued at about $468.31 million at the time of writing. Selling of this scale is typically read as a bearish STH signal and often coincides with additional downside. The latest data, though, suggests a panic-driven flush followed by a fast reversal. On August 3, the metric showed net purchases of roughly 3,150.66 BTC, a sharp shift from the net figures of 7,551.09 and 2,935.97 recorded on August 1 and August 2. The return to buying points to early accumulation that could influence Bitcoin's near-term performance. Long-term holders also contributed While STHs led the move lower, long-term holders (LTH)—those holding for more than 155 days—also appear to be distributing. Based on the Spent Output Profit Ratio (SOPR), LTHs have realized more profit than STHs. The LTH SOPR to STH SOPR ratio has climbed steadily since July 21, hitting a new high near 0.9355. A rising ratio indicates heavier selling from long-term investors, a cohort that typically holds through volatility. For the market to stabilize, LTH selling likely needs to cool and give way to consolidation. Spot market activity skews to profit-taking The rebound has not been fully embraced in spot markets, where traders have leaned into profit-taking as Bitcoin recovered. Spot netflow was +$105.7 million at the time of writing, indicating selling outpaced buying over the past 24 hours. Positive netflow has persisted for 15 straight days, including a reported reading of $84.29 million. U.S. demand has moved the other way. U.S. spot Bitcoin ETFs posted stronger buying, with daily net inflows of $170.09 million on August 3, supporting a more constructive backdrop. Bitcoin has mounted a relief rally, but positioning still looks cautious, with some investors hesitant to re-engage aggressively. Final Summary Short-term holders led the early selloff but flipped to net purchases of roughly 3,150 BTC on August 3, suggesting panic gave way to accumulation. Long-term holders are taking more profit and spot netflow remains positive, yet $170.09 million in ETF inflows keeps the outlook cautiously bullish.