Major crypto assets like Bitcoin and Ethereum traded lower on Monday. While the macroeconomic landscape improved with signs of de-escalation in US-Iran relations, the ongoing attack on the Coldcard hardware wallet continued to spread without signs of containment, putting pressure on the market.
Bitcoin's price retreated from its Sunday high of $63,600 to $62,800, marking a daily decline of approximately 1% and a weekly loss of about 4%. Ethereum fell over 1% to $1,858, failing to reclaim the $1,900 level, with a seven-day drop of roughly 5%. XRP slipped nearly 1% to $1.07, Solana dropped 0.5% to about $73, and Dogecoin also declined roughly 0.5% to under $0.07. BNB showed relative strength, remaining flat on the day with a weekly gain of 1.6%. Hyperliquid fell 1% to $52.52, posting a seven-day loss of 12.8%, the worst performance among the top ten major tokens.
On the macro front, positive signals emerged. US President Donald Trump announced he had canceled a planned strike on Iran and would begin a new round of negotiations on Monday, with allies like Saudi Arabia pushing for a deal to reopen the Strait of Hormuz. This triggered a sharp 7.3% drop in Brent crude oil futures for October to $81.55 per barrel. Easing inflation concerns drove a broad rally in US Treasuries, with the 10-year yield falling 4 basis points to 4.69%, after touching its highest level since January 2025 last week. The Nasdaq 100 futures and European stock futures both rose 0.8%, while gold edged up 0.3% to around $4,060 per ounce. Typically, lower oil prices, falling yields, and rising equity futures are bullish for crypto assets.
However, Bitcoin failed to respond positively to the macro signals, hindered by the hardware wallet security incident. Reports indicate that the Coldcard generated addresses suffered a third round of asset drainage over the weekend, bringing cumulative losses to 1,367 Bitcoin (approximately $89 million), affecting 4,585 addresses. The first attack on July 30 drained 1,083 Bitcoin from 1,196 addresses, while the third round involved 1,912 wallets but only stole 208 Bitcoin, suggesting the attackers had widely scanned for small-balance addresses.
Institutional fund flows also showed an unusual divergence. The Ethereum fund recorded a small inflow on Friday, while the Bitcoin fund saw outflows. This is a rare shift from the previous pattern where Bitcoin led the market direction and Ethereum followed. Analysts note that a key focus is whether Bitcoin can hold the $62,000 level during the US-Iran negotiations. If the reopening of the Strait of Hormuz drives oil prices lower, the crypto market could gain another macro-friendly window. If Bitcoin still fails to rebound at that point, it would indicate that the current downward pressure stems primarily from internal market factors rather than macro conditions.
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