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BREAKING: Controversial Bitcoin fork BIP-110 mines two blocks, then stops

For weeks the worry hanging over Bitcoin was a chain split.

Over the weekend it finally happened, and it lasted about eight hours…

On Saturday, supporters of a proposal called BIP-110 broke off onto their own version of Bitcoin at block 961,632.

Their chain mined two blocks and then stopped.

The main network mined dozens more while the breakaway sat still.

BIP-110 would have banned storing non-financial data, the images and text behind Ordinals, in Bitcoin transactions for a year.

Backers said it would ease congestion and cut the legal risk of hosting arbitrary data.

Critics said if you've paid the fee for the block space, it's yours to fill.

That fight is really the old one about who gets to decide what Bitcoin is for.

The split settled it without a vote.

Only 2.53% of miners had signaled support, against the 55% a change like this needs, and almost none of them actually pointed machines at the breakaway chain.

It also inherited Bitcoin's mining difficulty, which only resets every 2,016 blocks.

With that little hashpower behind it, the reset is roughly 350 days away, so its blocks land hours apart instead of every ten minutes.

A chain that slow can't function, and the miners knew it before they started.

Michael Saylor, who spent 110 points rejecting it in July, said BIP-110 was "free to fork, and the network was free not to follow."

If you hold your own keys, don't move any fork coins yet.

Developer Kevin Loaec warned that selling them now could let an attacker replay the transaction and drain your real Bitcoin, so the safest move is to leave everything untouched until replay protection lands around September.

The spam fight isn't over.

But the side that wanted to change Bitcoin just learned it can leave, and it can't take the network with it.

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Asked why anyone should stay in crypto while AI charts go vertical, Raoul Pal gave an answer with no loyalty in it at all.

Pal is a former Goldman Sachs macro trader and founder of Real Vision.

Then he made the case anyway, using a ratio most people never look at.

Plot Bitcoin against the Nasdaq, put standard deviation bands on it, and we're currently two standard deviations oversold.

His words: that sounds like you should be allocating more to crypto than to the Nasdaq.

Then he laid out what he called the perfect storm for 2026 and 2027.

The banks are coming. Stablecoins dominate the next 24 months, already running at roughly $100 trillion a year. The CLARITY Act gets signed, which frees everyone to build on chain. Global liquidity rises because $6 to $8 trillion of interest payments have to be rolled. The business cycle is running strong. And then the agents arrive.

All of it landing while sentiment sits at the floor. Fear and greed spent the longest stretch in history below 10, including the lowest reading the index has ever printed.

He named the bear case honestly too: the Middle East doesn't resolve, inflation runs hotter, tightening returns and the cycle gets cut off.

His odds on it? 70/30 in favour of the upside.

Cheap entry. Accelerating use case. Trillions incoming. 🎰

Let’s kick off the week with a look at the Bitcoin HODL Waves - one of the clearest snapshots of market conviction.

Each coloured band represents the percentage of Bitcoin that last moved within a specific time frame.

The warmer the colour, the younger the coins - with red showing Bitcoin that has been held for less than one day.

Today, we’re focusing on short-term holders (STHs) - defined as coins held for less than six months.

Here's how the supply breakdown looks today compared to two weeks ago:

TL;DR: 18.71% of all Bitcoin is in the hands of short-term holders. 💎

Up from 18.28% two weeks ago, a 0.43% rise and the first uptick after a long run of thinning.

The move is almost all at the very front.

The 1-day-to-1-week band jumped from 1.71% to 2.74%, a wave of coins that changed hands in roughly the past week, now sitting as fresh short-term supply.

The back end kept draining underneath it.

The 3-6 month cohort shed 0.54% across the six-month line into long-term hands, and the 1-3 month band gave back another 0.12%.

Coins are still hardening into long-term storage, same as the last few prints.

What's new is the front, where a week of heavy movement more than covered the drain.

For months this float did nothing but shrink, down from roughly 30% to start the year.

This print it grew, and the metric can't tell you whether that's fresh buyers or nervous hands reshuffling. Either way, the reactive supply just re-armed. 💎

BTCPay restricts remote Lightning access after attackers steal funds. Foundation and Citadel21 reported drained Lightning nodes, while the total losses remain unknown.

Hyperliquid’s RWA perps boom is eating into the revenue that backs HYPE. Open interest hit a record as revenue declined for a fourth consecutive quarter.

World Liberty received $100 million from businessman investigated for money laundering: NYT. Guren “Bobby” Zhou has not been charged, though British officials said the investigation remained active.

Crypto is going through a massive dot-com style shakeout as over 100 projects fold in 2026. Projects with real users and cash flow are surviving as weaker startups disappear.

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Trivia Answer: Trading with yourself or a coordinated party to create misleading volume 🥳

Wash trading creates artificial activity without genuine changes in ownership or demand.

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