Bitcoin rebounds as markets await key US jobs report

Bitcoin rose during Tuesday's trading after recovering from earlier losses in the session, as concerns surrounding the Coldcard wallet breach outweighed supportive macroeconomic factors such as lower oil prices and declining US Treasury yields, even as investors remained hopeful that talks between the United States and Iran could resume.

In trading, Bitcoin was up 2.2% at $63,800 as of 13:07 GMT, according to CoinMarketCap.

Uncertainty remains

The latest rebound followed a sharp market selloff after US President Donald Trump announced on Sunday that he had postponed new military strikes against Iran while awaiting the outcome of talks aimed at ending the conflict and resolving disputes over control of the Strait of Hormuz.

However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei denied Trump's claims on Monday, insisting there were no negotiations with the United States and no meetings scheduled between the two sides.

The Strait of Hormuz remains one of the key sticking points in the dispute. Before the conflict erupted in late February, roughly 20% of global oil and liquefied natural gas supplies passed through the strategic waterway each day.

Coldcard breach weighs on sentiment as investors await US jobs data

Bitcoin came under renewed pressure following the cyberattack targeting Coldcard hardware wallets, which reportedly resulted in the theft of nearly $89 million worth of Bitcoin from more than 4,500 addresses.

According to Galaxy Research, losses linked to the security breach totaled around 1,367 Bitcoin, making it one of the largest compromises of self-custody wallets in recent years. The incident prompted many users to move their holdings to newly created wallets or centralized exchanges as a precaution.

The data also showed that investors holding less than one Bitcoin transferred nearly 40,000 Bitcoin through individual transactions, marking the largest wave of activity among this group since the collapse of FTX in November 2022.

Although these transfers do not necessarily signal the beginning of widespread selling, they reflect growing security concerns and have weighed on investor sentiment in the near term.

At the same time, investors are preparing for a busy week of US economic data, highlighted by Friday's nonfarm payrolls (NFP) report.

Last week's Federal Open Market Committee (FOMC) meeting delivered a more hawkish outcome than markets had expected, while Federal Reserve Chair Kevin Warsh stopped short of providing a clear roadmap for returning inflation to the central bank's 2% target.

Analysts believe that another strong US labor market report could reinforce expectations for a Federal Reserve rate hike in September, potentially offsetting the supportive effect of lower bond yields and creating fresh headwinds for Bitcoin.