Bitcoin has fallen below the $60,000 support level, marking its lowest valuation in three weeks, as market confidence erodes following a major security breach at hardware wallet provider Coinkite.
The sell-off reflects growing investor anxiety over custodial risks in the digital asset space, with the benchmark cryptocurrency slipping from levels that had held firm for nearly two years.
Bloomberg reported that the ordeal has so far caused an estimated $130 million in losses to an unknown number of customers.
The price pressure coincides with reports that Coinkite is focusing on a technical post-mortem of the incident rather than immediately quantifying the extent of customer losses.
The company, whose security devices were compromised by a software bug, stated it is working to understand the days-long attack vector.
Bloomberg reported that the ordeal has so far caused an estimated $130 million in losses to an unknown number of customers.
This incident follows a sharp decline in Bitcoin prices earlier in the week, which Handelsavisen noted was triggered by reports of hackers exploiting a vulnerability in a popular Canadian hardware wallet manufacturer.