Bitcoin faces potential chain split at block 961,632 as Knots nodes begin rejecting non-signaling blocks
AI Market Summary
A minority of Bitcoin Knots nodes plan to reject non-signaling blocks at block 961,632 despite minimal miner signaling for BIP110, raising near-term risk of a temporary chain split and operational disruption for some participants. While activation is unlikely to meet the 55% threshold, commentary around a potential PoW hard fork contingency escalates governance and consensus uncertainty, which can weigh on risk appetite and liquidity conditions in BTC.
Impact level
● High
Affected assets
BTC/USDT+0.85%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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Bitcoin faces the risk of a BIP-110 soft fork activation, a proposal designed to cap the amount of arbitrary data that can be included in transactions. Activation requires a 55% threshold, but as of Thursday only 2.56% of blocks signaled support. About 22.65% of nodes run the Knots client and are expected to start rejecting blocks without a specific signal beginning at block height 961,632, raising the possibility that enforcement by a minority could still trigger a network split. With Bitcoin’s market cap around $1.3 trillion, any fork would introduce significant uncertainty.
