Strategy Inc. founder Michael Saylor has criticized the proposed BIP-110 software upgrade for Bitcoin, arguing that the "proposed cure is more dangerous than the condition." The upgrade aims to temporarily restrict the use of Bitcoin for storing large amounts of non-monetary data, including Ordinal inscriptions, to refocus the network on improving its function as money. Saylor expressed his apprehensions in an X essay titled "110 Reasons BIP 110 Is a Bad Idea," countering supporters who believe the data "spam" bloats the blockchain and burdens node operators.

Details of the Proposal

BIP-110 proposes a temporary soft fork that introduces seven specific restrictions on transactions containing large amounts of arbitrary data. The proposal is scheduled to head toward a key activation window in early August 2026. Proponents argue that the restrictions are necessary to alleviate significant unnecessary burdens on node operators caused by the storage of non-monetary data.

Saylor's Arguments

Saylor argued that a soft fork capable of rendering blocks invalid should be reserved only for clear, severe, and broadly understood failures. He contended that BIP-110 does not rectify known critical bugs or consensus failures such as inflation, signature validation, or double-spending. Instead, it addresses a "contested externality and use case," for which Saylor believes the burden of proof must be exceptionally high. He emphasized that Bitcoin's strength lies in neutral rules and hard consensus rather than agreement on every use case.

Industry Reaction

Saylor's critique faced resistance from veteran Bitcoin trader Fred Krueger, who published a counter-essay defending the upgrade as a "good idea." Conversely, Casa co-founder and Bitcoin security expert Jameson Lopp stated that it is acceptable to "stop respecting BIP-110 supporters" due to what he perceives as poor judgment regarding protocol changes. At the time of writing, BTC was trading at $64,785.18, up 0.26% over the last 24 hours.

Bitcoin (CRYPTO: BTC) has stabilized above $64,000 as rising ETF inflows and futures open interest helped offset ongoing risk-off sentiment in the market. BTC was trading at $64,420, up by 12% from its lowest point this year. The price stability follows a period where sharp swings triggered nearly $960 million in crypto liquidations, though recent data shows 112,566 traders were liquidated in the past 24 hours for $438.29 million. The global cryptocurrency market capitalization stood at $2.21 trillion, representing a 0.48% increase over the last 24 hours.

Major Cryptocurrency Performance

ETF Inflows and Market Dynamics

SoSoValue data shows that spot Bitcoin ETFs recorded inflows for four consecutive days, gaining $132 million on Friday and bringing weekly inflows to over $75 million. This accumulation contrasts with broader market risk-off behavior, as the Nasdaq 100 and S&P 500 indices dropped by over 1% due to AI jitters and escalating US-Iran tensions, which pushed crude oil prices up by over 15% from their yearly low. CoinGlass data indicates that futures open interest jumped to $47.6 billion from last month’s low of $44 billion. The weighted funding rate has remained positive since June 25, signaling that long holders are paying shorts and indicating more buyers than sellers.

Technical Indicators and Outlook

Bitcoin’s 14-day Relative Strength Index jumped from 50.8 to 66.9, pushing the asset into overbought territory. However, spot trading volume fell 21.5% to $4.1 billion, well below Glassnode’s lower threshold of $4.7 billion. BTC price has formed bullish technicals, moving above the 25-day moving average. The Percentage Price Oscillator (PPO) has been rising, with lines moving above the zero line and forming an ascending channel. Analysts suggest a potential bullish breakout to the key resistance at $67,375, its highest point on June 15, with further gains possible toward $70,000.

Corporate and On-Chain Activity

Strategy (NASDAQ: MSTR) is set to release its corporate activities from last week on Monday. The company stated it raised cash by selling shares and did not sell any Bitcoin, following a previous week where it sold Bitcoin worth over $200 million. Network activity showed mixed signals, with daily active addresses falling 7.6% to 599,000 and transfer volume dropping 16.1% to $4 billion. Long-term holders remain firm, with the short-term to long-term supply ratio falling to 12.1%.