The decline across crypto markets has been relatively modest despite the seriousness of the Coldcard wallet exploit, the substantial bitcoin losses involved, and the growing concerns about the reliability of hardware-based self-custody.

Bitcoin (BTC) and ether (ETH) are facing continued selling pressure as the Coldcard hardware wallet attack enters its fifth day, prompting renewed debate over the risks associated with personally managing digital assets.

The incident has weighed heavily on investor confidence across crypto communities, with many smaller holders reporting the loss of long-term holdings and reconsidering whether self-custody remains the safest option.

Marex analysts said the breach has added further pressure to market sentiment by causing some users to move their assets back to centralized exchanges, reversing the industry’s broader movement toward self-custody. They noted that cheaper bitcoin prices cannot solve the issue when the concern is trust in cold storage security.

Despite the scale of the attack and approximately $114 million worth of bitcoin being stolen, the price impact has been relatively limited. Bitcoin recently traded 1.5% lower over 24 hours at around $62,595, a level it has revisited several times recently. Ether dropped nearly 2% to $1,842, while the CoinDesk DeFi Select Index declined 2.5%.

Bitcoin’s 200-week simple moving average, currently above $63,000, has become a key market reference point after Strategy, led by Michael Saylor, said it is monitoring the long-term indicator. The company also suggested it may restart bitcoin purchases after a five-week pause, its longest break so far, with funding potentially coming from preferred shares carrying a 12% yield.

Meanwhile, geopolitical developments remain uncertain. President Donald Trump said discussions with Iran were expected to begin, but Iranian officials quickly pushed back on the statement. Foreign Ministry spokesperson Esmaeil Baghaei said Iran was not preparing to host a U.S. delegation or send representatives for negotiations.

Crypto Derivatives Positioning

Short bias increases:
Futures taker data shows a more bearish market stance compared with the previous week, with short positions accounting for more than 52% of volume. Takers are traders who execute orders immediately by matching against available liquidity.

Bitcoin futures activity picks up:
Bitcoin futures open interest has climbed to a one-month high of 772,000 BTC, indicating increased participation. Funding rates remain moderately positive at about 4% annually, suggesting some bullish positioning. However, a slightly negative 24-hour cumulative volume delta shows sellers are currently more aggressive through market orders.

Mixed signals across altcoins:
ADA, ETH, and BCH have recorded rising open interest, while SOL futures exposure continues to decline. TRX, DOGE, CC, and GRAM are showing negative funding rates, reflecting increased short positioning. However, the levels remain relatively mild, suggesting bearish trades are not yet overcrowded.

Options markets remain stable:
Despite the Coldcard exploit and rising Treasury yields, crypto options markets have shown little evidence of stress. The BVIV 30-day implied volatility index has stayed near 37% for four consecutive sessions, indicating relatively calm expectations for future price swings.

Traders favor upside calls:
On Deribit, bitcoin call options with $68,000 and $70,000 strike prices remain among the most actively traded contracts, showing continued demand for bullish exposure.

Token Market Developments

NEAR Protocol’s Intents system has surpassed $24 billion in lifetime transaction volume, according to the project’s latest monthly development report. The system enables users to specify their desired outcome, such as completing a cross-chain token swap, while the network determines the execution path automatically.

The growth came after the release of protocol version 2.13, which introduced upgrades such as quantum-resistant signing and dynamic resharding. Quantum-safe signing strengthens transaction security against potential future quantum computing threats, while dynamic resharding allows the network to automatically adjust capacity as usage grows.

NEAR is also expanding into artificial intelligence through AI compute staking, allowing users to lock NEAR tokens to support AI-related computing infrastructure and earn rewards tied to demand for those resources.

NEAR was recently trading near $1.72, according to CoinDesk data.