MicroStrategy Loses $8.3 Billion on Bitcoin, Sells Reserves for First Time Since 2022

Bitcoin (BTC) plunged to two-week lows, hitting $62,369 on Bitstamp, a level last seen on July 14. The leading cryptocurrency faced fresh downside pressure as US stocks tracked sideways into the monthly close, diverging from the relief bounce witnessed in Asian markets.

The 3.5% Bitcoin drop comes amid global financial market uncertainty, with investors closely tracking traditional equity movements for directional signals. The divergence between Asian and US market performance is creating a volatile environment for digital assets, with traders assessing whether this represents a healthy correction or the beginning of a deeper downtrend.

Ethereum marks its 11th anniversary with a formidable $148 billion stablecoin base, reinforcing its status as one of the most critical liquidity networks in the crypto ecosystem. Despite its exponential growth, mainnet fees have shown a cooling trend, potentially improving accessibility for everyday users and developers building on the network. This milestone arrives at a pivotal moment for the network as the proof-of-stake transition continues to strengthen and developers work on upgrades like Dencun. The combination of massive stablecoin volume and more affordable fees could drive mass adoption, particularly with Bitcoin's upcoming halving and the sustained interest in DeFi and NFTs across the cryptocurrency market.

Coldcard, a leading Bitcoin hardware wallet manufacturer, has officially acknowledged a critical vulnerability affecting its Mk4, Mk5, and Q models following reports of $38.5 million in Bitcoin losses potentially linked to their devices. The company initially claimed the issue was limited to Mk3 models but has now released urgent firmware updates for all affected devices, including the previously identified Mk3.

This security flaw generates insecure seeds, putting the funds of thousands of Coldcard wallet users at risk. The incident represents one of the most significant security breaches in the Bitcoin ecosystem, forcing the community to reconsider cryptocurrency storage practices. While Coldcard hasn't specified how many users were affected, the reported loss amount underscores the severity of the issue and the urgent need for device updates across the affected models.

Granite Protocol has been listed on Borrow on Bitcoin, adding another lending route for users who want to put Bitcoin-linked collateral to work without selling their Bitcoin. This development marks a significant milestone for Bitcoin DeFi, showcasing the continued growth and maturation of decentralized financial solutions being built on the Stacks blockchain. The integration of Granite Protocol with Borrow on Bitcoin significantly expands yield farming options for Bitcoin holders, allowing them to generate passive income on their assets while maintaining direct ownership. This development reinforces the trend of Bitcoin-native DeFi infrastructure, which aims to bring traditional financial liquidity and functionality to the Bitcoin ecosystem without compromising its decentralized principles and security.

The US Treasury has sanctioned two Iranian firms, including Hormuz Safe, which 'accepts payment in Bitcoin and other digital assets' for passage through the Strait of Hormuz. This action marks a new front in the regulatory war against the use of cryptocurrencies in sensitive international transactions, showing how financial watchdogs are actively monitoring the crypto space.

The sanctions, implemented by OFAC (Office of Foreign Assets Control), aim to prevent Iran from using cryptocurrencies to circumvent traditional economic sanctions. Hormuz Safe specifically facilitates vessel passage through the strategically vital Strait of Hormuz, a crucial maritime route for global oil trade. This US government action highlights growing concerns about cryptocurrency use in activities that could threaten national security and international financial stability.