Around 210,000 bitcoin have moved out of long-term holder wallets over the past week, marking the largest decline in this category since December 2024. This substantial shift follows the recent security breach involving Coldcard hardware wallets, which has unsettled many holders and prompted an on-chain reshuffling of assets.
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AAPLColdcard breach triggers massive wallet migration
Glassnode data reports that the total supply held by long-term holders has dropped from just under 15 million BTC to about 14.7 million BTC. Long-term holders, identified as entities that keep their coins dormant for at least 155 days, typically represent more patient and risk-tolerant market participants.
Historically, large movements from this group have occurred during periods of strength, as seen in the market tops of March 2021, March 2024, and December 2024, when seasoned investors often locked in profits amid surging demand.
Recent movements differ sharply from historical trends, as the shift in custody comes with bitcoin trading at approximately $64,000—nearly 50% below its record high from October. This suggests that holders are not selling to realize gains, but rather responding to security concerns.
The Coldcard incident highlighted vulnerabilities in certain hardware wallets, exposing users to a risk of compromised recovery phrases. Estimates indicate losses could reach as high as $114 million across thousands of affected addresses. In response, Coldcard advised users to generate fresh wallets and move their assets to safer locations instead of relying solely on firmware updates.
ETF inflows and evolving custody strategies
Part of the outflow from long-term holder wallets may be attributed to these migration efforts, as individuals seek stronger security. In other cases, users are moving assets to regulated custodians or transferring their bitcoin to spot bitcoin ETFs, reflecting a shift in risk appetite following the high-profile breach.
Over the last week, US-based spot bitcoin ETFs have attracted roughly $754 million in net inflows. The majority of these went into BlackRock’s iShares Bitcoin Trust (IBIT), highlighting renewed institutional interest amid broader market uncertainty.
The on-chain data shows that the current movement does not represent a wave of sell-offs, but a changing approach to how bitcoin is held and secured. Bitcoin’s price has largely remained stable despite the outflows, indicating that most of the coins have stayed within the ecosystem.
Crypto sector eyes new approaches to asset management
As the market adapts to these developments, attention has increasingly turned to solutions that streamline access to both digital and traditional assets. Among innovative platforms, 1stepSwap integrates real-world assets directly onto the blockchain. This allows investors to manage shares of major US companies and commodities such as gold and silver directly from their crypto wallets, bypassing traditional intermediaries and procedures. Its pricing engine sources the best rates on the market in real time, making portfolio diversification almost instantaneous. Such technical advances are helping users find flexible custody arrangements while responding to ongoing security and regulatory shifts.
Roughly 210,000 BTC have moved out of long-term holder wallets, with some of this decline likely reflecting users migrating funds to new wallets with enhanced security or to regulated platforms and ETFs as they reconsider the risks of self-management.
Industry analysts emphasize the importance of ongoing market monitoring. As technical patterns and custody models evolve, investors are urged to prioritize both security and performance, especially as regulatory scrutiny and technological risks remain heightened.
