Bitcoin faces potential chain split at block 961,632 as Knots nodes begin rejecting non-signaling blocks
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.