Analysis: The Coldcard security incident has triggered on-chain fund migration, with Bitcoin small transfers reaching a new high since the FTX collapse

As the suspected hacking incident involving the Coldcard wallet continues to unfold, Bitcoin microtransaction activity has surged, reaching its highest level since the FTX exchange collapse, prompting renewed discussions in the market about the security of self-custodied Bitcoin.

CryptoQuant's research director Julio Moreno disclosed data showing that the number of Bitcoin transactions under 1 BTC circulating on-chain has risen to its highest level since November 2022, with approximately 39,600 BTC transferred in a single day, just about 300 BTC lower than the record set on November 16, 2022 (39,900 BTC) a few days after FTX filed for bankruptcy. He believes that users taking proactive measures to address risks is a positive sign.

Additionally, Bloomberg ETF senior analyst Eric Balchunas believes that Bitcoin ETFs, with their mature regulatory framework and convenience, may provide a safer investment option for some users.