Bitcoin climbed as market concerns surrounding the Coldcard wallet exploit and Strategy’s recent BTC sales began to fade, though overall sentiment remained deeply cautious with investors still in “extreme fear.”

Bitcoin (BTC) advanced 1.6% over the last 24 hours, briefly rising to $64,160 before pulling back. The move pushed BTC to its highest level since July 31, following a period of selling pressure caused by the Coldcard security breach and bitcoin sales from Strategy, the largest corporate holder of the cryptocurrency.

The Coldcard incident has resulted in approximately 1,816 BTC being stolen, worth around $114 million, from more than 5,200 addresses since July 30, according to researchers monitoring the exploit. The attack was linked to a weakness in Coldcard wallet firmware.

Meanwhile, Strategy sold 1,638 BTC between July 27 and Aug. 2 at an average price of $63,957 per bitcoin. The transaction represented the company’s third BTC sale of 2026 and occurred below its average purchase price of $75,419. Strategy said the funds were directed toward preferred stock dividends and STRC share repurchases instead of new bitcoin acquisitions.

Despite BTC’s recovery, market sentiment remained fragile. The Crypto Fear & Greed Index dropped to 25, reflecting “extreme fear” among investors. Spot bitcoin ETFs recorded $61.5 million in outflows last week but saw $170 million in inflows on the following day. Ethereum ETFs attracted $27.4 million during the week before experiencing $11.4 million in outflows on Monday.

The Japanese yen also became a focus for traders after falling nearly 4% following confirmation from U.S. Treasury Secretary Scott Bessent that the U.S. and Japan had coordinated currency intervention efforts. The move renewed comparisons with the August 2024 carry-trade unwind, though bitcoin’s strong inverse relationship with USD/JPY suggests broader dollar strength remains the primary macro risk.

Derivatives Market Trends

ATOM sees strong futures activity:
Cosmos’ ATOM rose nearly 9% over 24 hours, making it one of the market’s top performers. The increase came alongside elevated futures positioning, with open interest nearing a record 80 million tokens.

ATOM rally faces hedging pressure:
Although ATOM prices have risen, both perpetual funding rates and 24-hour open-interest-adjusted cumulative volume delta (CVD) remain negative. This suggests traders are still maintaining short positions or using hedges against further upside. The token’s recent 12% three-day gain comes after a steep decline, leaving the broader trend under pressure.

ADA futures hit new milestones:
Cardano’s ADA has attracted significant derivatives demand, with futures open interest reaching a record 2.79 billion coins. The token’s 24-hour CVD is the strongest among major cryptocurrencies, indicating aggressive buying through market orders. Slightly positive funding rates also support the current bullish momentum.

BTC and ETH futures remain stable:
Bitcoin’s recent rise in open interest proved short-lived, with levels returning to approximately 740,000 BTC, where they have remained in recent weeks. Ethereum futures activity has shown a similarly muted pattern.

Altcoins show mixed signals:
Among the top 20 cryptocurrencies, market participation remains uneven. ADA, TRX, ZEC, AVAX, and ETH are recording positive CVD readings, while several other major tokens continue to face selling pressure.

Bitcoin Volatility and Options Setup

Bitcoin’s 30-day implied volatility index (BVIV) has fallen close to 36%, its lowest level since May 31. The decline suggests reduced demand for downside protection and calmer market conditions. However, volatility is trading below its longer-term averages, meaning a potential rebound remains possible if market uncertainty increases.

Derivatives activity on Deribit is concentrated around the $60,000 put strike and $70,000 and $72,000 call strikes. This places the $60,000–$72,000 range as an important zone where a breakout or breakdown could trigger stronger volatility.

The most actively traded bitcoin option over the past day was the $70,000 call, while Ethereum’s most active contract was the $1,900 call.

Cardano Gains Momentum

Cardano’s ADA rose to $0.195, reaching its highest level since July 4, while its market capitalization increased 24% over the past week, according to Santiment data. The performance made ADA one of the strongest assets in an otherwise mixed altcoin market.

The rally has developed even as the number of ADA wallets has declined. Cardano currently has about 7,070 fewer non-empty addresses than two months ago, indicating that the price increase has been driven mainly by existing market participants rather than renewed retail activity.

The trend carries both positive and negative implications. A smaller group of buyers supporting the move may suggest stronger conviction, but it also leaves the rally dependent on a narrower investor base. A rebound in wallet activity would provide stronger confirmation, while continued price gains alongside falling holder numbers could indicate limited participation.

Beyond price momentum, Cardano’s ecosystem continues to expand through developments such as Leios testing, Hydra scaling improvements, Mithril upgrades, Pyth oracle integration, and new Catalyst developer funding. These advancements provide additional support for ADA’s recovery beyond short-term market speculation.