CryptoQuant Says Coldcard User Bitcoin Transfers Near FTX Collapse Levels
Summary
- CryptoQuant said transfers by small Bitcoin holders surged to levels seen during the 2022 FTX collapse after the Coldcard security flaw was disclosed.
- It said Bitcoin transfer volume for transactions of less than 1 BTC reached 39,600 BTC on July 31, close to the 39,900 BTC recorded during the FTX collapse in November 2022.
- CryptoQuant said the surge marked the largest movement in about four years as users shifted Bitcoin to other custody options following a flaw in Coldcard's random number generation process.
Forecast Trend Report by Period
Transfers by small Bitcoin holders surged after a Coldcard security flaw was disclosed, reaching levels close to those seen during the 2022 collapse of crypto exchange FTX, according to CryptoQuant.
The on-chain analytics firm wrote on X on August 4 that Coldcard users are moving funds at a pace comparable to the FTX collapse.
CryptoQuant said Bitcoin transfers of less than 1 BTC totaled 39,600 BTC on July 31. The increase came just days after the Coldcard security flaw was made public.
That was close to the 39,900 BTC recorded during FTX's collapse in November 2022. CryptoQuant said it was the largest movement of funds by small Bitcoin holders in about four years.
Coldcard recently revealed a flaw in its random number generation process, a core part of wallet security. Users appear to have moved Bitcoin from existing wallets to other custody options, driving the spike in transfers.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.