TL;DR
- Bitcoin dropped below $63,000 and revisited $62,200 on Monday, leaving BTC more than 4% lower weekly as weekend relief quickly faded during trading.
- Ether fell below $1,850 and XRP tested $1.05 support, while most major altcoins declined and total crypto capitalization lost about $40 billion daily.
- Coldcard losses pressured self-custody confidence, yet volatility stayed contained as futures shorts increased alongside bullish options bets at $68,000 and $70,000 across markets today.
Bitcoin fell below $63,000 on Monday, erasing a brief Sunday rebound and returning to $62,200 for the second time in several days. The decline left BTC more than 4% lower over the week, with market capitalization near $1.25 trillion and dominance below 56.5%. The renewed slide showed that weekend relief had not repaired the market’s fragile demand. Bitcoin had reached $63,700 after easing geopolitical concerns, but sellers quickly regained control as traders also absorbed the fifth day of fallout from the Coldcard wallet exploit and its reported $114 million losses during another unsettled trading session.
Security concerns deepen weakness across major crypto assets
Ethereum and XRP followed Bitcoin lower as pressure spread across major altcoins. Ether slipped below $1,850 after failing to recover from a rejection near $1,980 during July, while XRP struggled to remain above $1.05, a level described as a critical support area. Bitcoin’s weakness again became the trigger for broader losses rather than an isolated correction. Solana, Dogecoin, Cardano, Monero and RAIN also traded in the red, while only a limited group of assets managed small gains, reinforcing the impression that buyers were becoming selective and increasingly defensive across the market in the hours ahead.
The Coldcard incident added an unusual layer of uncertainty because it challenged confidence in direct custody, a principle long treated as fundamental to cryptocurrency ownership. Some holders reportedly moved coins back to exchanges after the hardware-wallet losses, reversing the usual preference for self-custody. The market reaction remained surprisingly restrained compared with the scale of the security breach. Bitcoin declined about 1.5% over 24 hours and Ether nearly 2%, while implied volatility stayed near 37%, suggesting traders were concerned but had not shifted into panic or demanded dramatically more protection through options across the wider market.
Derivatives positioning offered no simple directional signal. More than 52% of taker futures volume leaned short, yet Bitcoin futures open interest reached a one-month high of 772,000 BTC and funding remained moderately positive at 4% annualized. Calls at $68,000 and $70,000 were among the most actively traded options. Bearish selling pressure coexisted with persistent bets on a rebound, leaving the market unusually divided. Meanwhile, total crypto capitalization fell by about $40 billion to $2.22 trillion, and XRP, ETH and other large tokens remained vulnerable if Bitcoin failed to defend the $62,000 region during Monday trading.
