Crypto market shifts capital to AI as major Bitcoin hack unfolds

Investors are redirecting money away from cryptocurrencies toward AI‑related infrastructure such as land, energy and building projects. Former Binance CEO Changpeng Zhao noted abundant capital seeking opportunities outside crypto, and Social Capital founder Chamath Palihapitiya urged focus on the “LPS” trio (land, power, structure) as the fastest way to generate returns. Bitcoin remains near $63,000 as the sector experiences a funding slowdown.

At the same time, a five‑year‑old software flaw in Coldcard hardware wallets was exploited, resulting in the theft of about 1,082.65 BTC (roughly $70 million) from 1,196 addresses in just 41 minutes. The vulnerability allowed private keys to be reconstructed from device serial numbers and timestamps. Users are advised to generate new recovery phrases and move funds. Binance’s founder recommended diversifying storage methods, and the incident comes ahead of the BIP‑110 soft‑fork vote on 7 August and a possible split to eCash on 21 August.