Bitcoin broke back above $65,000 on Friday, touching an August peak of $65,340 before settling into a 0.5% daily gain. The move came alongside an escalating dispute over the BIP 110 proposal, where developer Luke Dashjr says a failed vote would leave a proof-of-work change as the only option, and a fresh delay to the U.S. CLARITY Act.
Bitcoin pushed back above $65,000 on Friday. Bitcoin touched an August peak of $65,340 on Bitstamp, its highest level of the month and its first return to that mark since July 27.
Bitcoin Reclaims the $65,000 Range
Before 4:00 a.m. EST, selling pressure had pulled bitcoin down to $64,132. A strong rally then followed, adding more than $1,000 in five hours to reach its daily peak. Bitcoin then slipped below $64,800 near 10:10 a.m. EST, but a second relief rally pushed it back past $65,000.
At the time of writing, bitcoin traded just under $65,000, up 0.5% on the day. The move pushed bitcoin's market capitalization back above $1.3 trillion. That capped a 3.3% weekly rise. In the derivatives market, short liquidations topped $30 million for a second consecutive day, while long liquidations neared $8 million; across the broader crypto economy, total liquidations hit $192 million, with short wipeouts accounting for just under $112 million.
BIP 110 Dispute Raises Fork Risk
Yet the price action unfolded against a tense backdrop. The BIP 110 proposal reached a fever pitch after Core developer Luke Dashjr suggested on X that a failure to gain traction would leave changing bitcoin's proof-of-work consensus mechanism as the only path forward. According to Dashjr: "If BIP110 doesn’t pan out, the only option is a PoW change."
Bitcoiner Nithu Sezni went further, arguing that if miners refuse to activate BIP 110, bitcoin effectively becomes a centralized "shitcoin." Sezni's view holds that if six major mining pools can block the proposal and collude on network rules, decentralization is lost, leaving node runners exposed to blockchain bloat before hyperbitcoinization can occur. Still, the debate appears to have had a limited impact on bitcoin's price so far; some market observers suggest the run-up ahead of the BIP 110 deadline instead reflects investors accumulating coins in case a hard fork hands them matching tokens on a split chain.
CLARITY Act Vote Pushed to September
Regulatory hopes took a hit too. Senate Majority Leader John Thune delayed the CLARITY Act vote to September, dashing expectations of a pre-recess pass on a bill the crypto industry had framed as a milestone. Some market participants brushed off the potential negative impact.
Source: Bitcoin.com
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