Bitcoin traded above $63,000 on August 1 after finishing July with a 7.5% monthly gain, but the cryptocurrency remained under pressure as investors reacted to higher U.S. Treasury yields, uncertainty over Federal Reserve interest-rate policy and softer institutional demand. According to Bitfinex analysts, August is expected to remain volatile as markets monitor macroeconomic data, spot Bitcoin ETF flows and the fallout from a major Coldcard hardware wallet exploit.
Bitcoin Holds $63.1K as ETF Inflows Stay Weak
Bitcoin was trading around $63,104, down about 1.1% over the previous 24 hours, after recovering from a low below $58,000 at the beginning of July. According to Bitfinex, Bitcoin entered the latest Federal Reserve meeting with relatively low leverage after derivatives positions were largely cleared during June’s market correction, reducing the risk of large forced liquidations. Average daily crypto liquidations have also remained below the $400 million-$500 million range seen for much of 2026, helping limit downside volatility despite weaker market sentiment. Meanwhile, institutional participation remains subdued as U.S. spot Bitcoin ETF inflows have yet to regain the strong momentum seen earlier this year.
Bitcoin Under Pressure as 1,082 BTC Stolen
Investors turned cautious after the Federal Reserve maintained its restrictive policy stance, with rising Treasury yields and a stronger U.S. dollar reducing appetite for risk assets such as cryptocurrencies. Sentiment was further weakened by reports of a major Coldcard hardware wallet exploit, which reportedly resulted in the theft of approximately 1,082.65 BTC, worth nearly $70 million, from 1,196 wallets in just 41 minutes. According to Galaxy Research, the attackers exploited a firmware vulnerability that generated predictable wallet seed phrases, raising fresh concerns over self-custody security. Analysts also warned that any future sale of the stolen Bitcoin could create additional downward pressure on prices.
Bitcoin Tests $68K Resistance as Tether Expands Reserves
Bitcoin’s July recovery followed one of its weakest monthly performances in years. According to Bitfinex Alpha, Bitcoin fell 20.48% in June, its worst June performance since 2022 and second worst since 2013, before rebounding sharply as selling pressure eased and ETF outflows slowed. However, analysts say Bitcoin still faces significant resistance near the $68,000-$68,500 range, where a large concentration of investors may look to sell after breaking even.
Meanwhile, Tether increased its Bitcoin holdings by 1,796 BTC during the second quarter, taking total reserves to 98,933 BTC. The company also reported $1.5 billion in operating profit, $187.75 billion in total assets against $183.64 billion in liabilities, and expanded its gold reserves by 14 metric tons, highlighting continued growth in the stablecoin market despite broader crypto uncertainty.
Bitcoin Eyes $68K as Markets Await U.S. Data
Market participants will closely watch upcoming U.S. employment and inflation data, which could influence expectations for future Federal Reserve policy and risk appetite. Analysts also expect daily spot Bitcoin ETF flows, Treasury yields and any developments related to the Coldcard exploit to remain key drivers of price action. According to Bitfinex, Bitcoin may continue trading within a broad range unless stronger institutional demand emerges to push the cryptocurrency decisively above the $68,000 resistance zone.