Bitcoin managed to regain ground on Friday, climbing from earlier lows near $80,350 to trade around $83,000 as US markets opened, despite concerns over a reported exploit targeting Ledger hardware wallet users. The overall cryptocurrency market avoided a substantial sell-off, digesting new developments without significant volatility as traders shifted their focus to the crucial weekly close.
BTC price steadies amid Ledger wallet concerns
BTC/USD hovered close to the $82,500 support level in Friday’s session, according to TradingView data, after recovering from the sharp drop recorded on Thursday. The previous day’s decline saw prices dip to $80,350 before renewed buying activity emerged and total crypto liquidations exceeded $1 billion over a 24-hour period.
Analysis from data provider CoinGlass indicated that bitcoin’s spot price moved through areas of high liquidity on exchange order books, with strong concentrations of seller interest appearing near $84,000. The rebound largely coincided with a brighter mood in US equities as technology stocks, including those within the Nasdaq Composite Index, rose following a period of downward pressure.
CNBC reported that the tech sector’s recovery followed weaker earnings projections from artificial intelligence company OpenAI, with Adam Crisafulli of market research firm Vital Knowledge noting, “The sell-off reflected extreme positioning imbalances that have further to unwind in our view, which is why the whole AI-linked tech stock complex is unlikely to simply stage a sharp, V-shaped rebound.”
BTC/USD settled near $82,500 as traders absorbed reports of a security issue impacting Ledger hardware wallets, yet the broader market remained resilient and avoided further significant losses.
Ledger, one of the leading manufacturers of crypto hardware wallets, directly addressed the alleged fund thefts in an X post, tracing the issue to CryptoBillis, a distributor based in Southeast Asia. The company advised affected users, “If you have set up your Ledger device, consider moving assets to a new Ledger signer (with new seed).”
Hardware wallet security has faced growing scrutiny in 2024 following multiple incidents, including a multi-phase hack targeting Coldcard, another specialized hardware wallet manufacturer, earlier this year.
Mini dictionary: Ledger is a French company that specializes in the development of hardware wallets, which are physical devices designed to securely store cryptocurrency private keys offline and protect digital assets from online threats.
US economic outlook and BTC price triggers
As the weekend approached, traders focused attention on the weekly candle close, with $82,500 identified as a key support level since mid-September. Analysts pointed out that this price zone forms part of a possible inverse head-and-shoulders pattern, a technical signal that may indicate a future reversal, drawing parallels to a similar formation seen last year.
Bitfinex Alpha, the research branch of notable cryptocurrency exchange Bitfinex, projected a continuation of sideways trading above $81,300 and below $86,500 until October 14, when the United States is set to release fresh inflation data.
The blog post from Bitfinex Alpha stated, “Our primary outlook anticipates range-bound consolidation between $81,300 and $86,500 heading into the 14 October US CPI data, with repeated retests of $84,000.”
Market participants are closely monitoring macroeconomic catalysts, including the upcoming release of Consumer Price Index (CPI) data, which could spark the next round of volatility for BTC/USD.
