Bitcoin ETF Inflows Roar Back as Coldcard Hack Sparks Wallet Exodus

Crypto closed the first week of August with a cleaner institutional bid and a messier on-chain backdrop. From August 3 to August 7, U.S. spot Bitcoin ETFs recorded $854 million in net inflows across five straight green days, a sharp reversal from the prior week’s outflows. Ethereum ETFs added $245 million, HYPE returned to inflows with $2.84 million, and XRP funds drew $1 million. 

Bitcoin is trading near $65,093, while Ethereum is around $1,923. The positive flow tape came alongside one of the year’s most important security shocks: Galaxy Research now estimates at least 1,719 BTC, worth roughly $111 million, was stolen in the Coldcard exploit, with possible losses above $130 million. The market absorbed the incident without a broad exchange-selling panic, but defensive positioning remains visible. The new week brings CPI, PPI, and retail sales, making inflation the next test for a market trying to convert ETF demand into a durable recovery.

The week’s cleanest number was $854 million. After a choppy July, Bitcoin ETFs delivered five straight inflow days. Ethereum followed with $245 million, extending its quiet relative-strength run. The ETF channel is again doing what bulls needed it to do: absorb supply through regulated wrappers.

Still, the market is not roaring. Bitcoin had drifted toward the lower end of its recent range earlier in the week, failing to sustain momentum above $66K before recovering near $65K. The Coinbase Bitcoin Premium Index has now stayed negative for 78 consecutive days, the longest streak on record, showing that U.S. spot demand remains weaker than offshore pricing.

That tension defines the tape. ETF inflows improved. Spot momentum has not fully been confirmed. Hashdex also announced it will close and liquidate DEFI, the first spot Bitcoin ETF to shut down, with only $14.7 million in assets. That is not a systemic event. It is a reminder that the ETF market is already separating winners from the rest.

The macro story gave crypto room to breathe. U.S. ADP employment rose only 44,000 in July, below expectations, and nonfarm payrolls later fell by 23,000, badly missing forecasts for an 80,000 gain. The unemployment rate still slipped to 4.1%, partly reflecting a smaller labor force. Prior payroll readings were also revised lower, changing the read from slowdown to something closer to labor-market fatigue.

That makes the next inflation prints crucial. CPI lands this week, PPI follows, and retail sales plus Michigan sentiment will test whether weakening jobs are being accompanied by weaker demand or sticky prices. 

Equities did not wait. The S&P 500 closed at a record high as earnings strength, especially around AI, kept traditional risk appetite alive. Crypto is now trading inside that macro paradox: softer jobs help liquidity expectations, while strong equities compete for capital.

Coldcard dominated the blockchain tape. Galaxy Research now says it has confirmed 1,719 BTC stolen with high confidence, while total losses may exceed $130 million if outstanding cases are verified. Earlier waves had already affected thousands of addresses. The latest attack wave moved roughly 388.9 BTC across 218 transactions, involving 462 victim addresses and 216 fresh destinations.

The market reaction was unusual. CryptoQuant and Santiment both pointed to a sharp rise in Bitcoin network activity. Daily active addresses jumped close to 1 million on July 31, and transfers below 1 BTC reached the highest level since the FTX collapse. Yet exchange inflows did not explode. Santiment said exchange inflows during August 1–6 averaged about $1.55 billion, below July’s average. That suggests the activity was mostly wallet migration, not outright capitulation.

Corporate crypto balance sheets kept diverging.

Strategy sold 1,638 BTC for $104.7 million between July 27 and August 2, using proceeds to fund preferred dividends and repurchase STRC. It also raised $290.6 million through MSTR share sales, bought back $81.2 million of STRC, and lifted its dollar reserve to $4 billion. Strategy still holds 842,138 BTC, acquired for $63.51 billion at an average price of $75,419.

Michael Saylor tried to draw the boundary: his personal “never sell” message applies to him as a saver; Strategy is a public company with capital-management duties. That distinction now matters for Bitcoin market structure. Strategy remains enormous, but its role is no longer interpreted as automatic demand under every condition.

BitMine moved in the opposite direction. It added 10,399 ETH, bringing holdings to 5.8 million ETH, about 4.8% of supply, with roughly 85% staked and annualized staking revenue estimated around $247 million. Ethereum’s treasury story is increasingly income-linked.

A proposed Ethereum “Tapered Issuance Burn” EIP added complexity. The draft would burn validator issuance as staking approaches 50% of supply. Aave founder Stani Kulechov warned it could reduce staking yields and hurt institutional ETH demand. That debate goes directly to ETH value capture: higher scarcity may help the asset, while lower staking income may hurt allocators seeking yield.

Bitcoin’s network engagement strengthened materially. Daily active addresses and entity-adjusted transfer volumes moved above upper statistical bands, helped by Coldcard-driven repositioning and higher economic throughput.

Holder behavior stayed resilient. The ratio of short-term to long-term holder supply remains near historical lows, showing that long-term investors are not rushing to distribute. At the same time, profitability remains weak. Supply in profit is near cyclical lows, realized spending is increasingly defensive, and the market is still trading below key cost-basis resistance.

The key zone remains familiar: $62K–$66K as the active range, with $69K as the next meaningful resistance. A move through $69K would begin repairing short-term holder psychology. A rejection keeps BTC in consolidation.

The new week is about inflation and follow-through.

Markets will watch July Existing Home Sales on Tuesday, the OPEC Monthly Report and July CPI on Wednesday, July PPI on Thursday, then Retail Sales, Michigan Consumer Sentiment and inflation expectations on Friday. CPI and PPI will decide whether the weak payroll report becomes a liquidity tailwind or a stagflation concern.

Base case: Bitcoin holds the low-to-mid $60Ks and tests $66K again if ETF inflows persist. Bull case: cooler inflation and continued ETF demand push BTC toward $69K. Bear case: sticky CPI, wider options skew and renewed Coinbase discount pressure send price back toward $62K.

Ethereum should continue attracting attention if ETF inflows and BitMine-style staking economics remain visible. 

The market is improving, but the quality of the bid matters more than the headline price.

Bitcoin has ETF inflows, stronger network activity and resilient long-term holders. It also has weak U.S. spot demand, defensive derivatives, and a major hardware-wallet incident reminding investors that custody risk is not theoretical. Ethereum has a clearer yield narrative, though issuance-policy debates may affect that story.

The sharp thesis is this: stay constructive while ETF inflows remain green, but avoid treating this as a confirmed breakout until Bitcoin clears $69K with stronger spot participation. Add exposure selectively to BTC on flow confirmation, keep raising the weight of ETH where staking value capture is visible, and favor infrastructure tied to stablecoins, tokenized reserves, custody, security and institutional market plumbing. The recovery is alive. It still needs a buyer beyond the ETF wrapper.